Shadee Corp expect to sell 500 sun visors in May and 400 in June. Each Pfizer se

ID: 2510382 • Letter: S

Question

Shadee Corp expect to sell 500 sun visors in May and 400 in June. Each Pfizer sells for $18. Shadees

Beginning and ending finished goods inventory is form a r 75 and 40 units. Respectively. Ending finished goods inventory for June will be 55 units.

The following information apples to the questions displayed below] Shadee Corp expects to sell 500 sun visors in May and 400 In June. Each visor sells for $18. Shadee's beginning and ending finished goods Inventories for May are 75 and 40 units, respectively. Ending finlshed goods Inventory for June will be 55 unlts. volue Required information 9.09 points Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers 511 per hour Required Determine Shadee's budgeted direct labor cost for May and June (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Direct Labor Cost

Explanation / Answer

Solution:

Budgeted Direct Labor Cost

Visors produced (May)

= Sales (units) - Opening finished Inventory + Ending finished Inventory

=500 -75 +40

=465

Visors produced (June)

= Sales (units) - Opening finished Inventory* + Ending finished Inventory

=400 -40 +55

=415

* Ending finished Inventory of May will be Opening finished Inventory for June.

Particulars

May

June

Visors produced

465

415

Budgeted Direct labour hours per unit

0.20 hours

Total Budgeted Direct labour hours

93 hours

83 hours

Budgeted Direct labour cost per hour

$ 11

Total Budgeted Direct labour cost

$ 1,023

$ 913

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