Question

Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 28 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $10 per hour.
Bugeted Production in Units: May 585, June 410

Required:

1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.90.) (Round your answer to 2 decimal places.)

2. Compute the Shadee’s budgeted cost of goods sold for May and June.

Answer 1

Answer:

1. Manufacturing cost per visor us $16.50

2.budgeted cost of goods for may and June is $9594. & $6724 respectively

Explanation:

See attached files