[The following information applies to the questions displayed below.] Shadee Cor
ID: 2556748 • Letter: #
Question
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 520 sun visors in May and 310 in June. Each visor sells for $26. Shadee’s beginning and ending finished goods inventories for May are 60 and 60 units, respectively. Ending finished goods inventory for June will be 70 units.
4.
value:
9.09 points
Required information
Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $12 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.)
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5.
value:
9.09 points
Required information
Each visor requires a total of $5.00 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 26 closures on hand on May 1, 21 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $12 per hour.
Required:
1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.80.) (Round your answer to 2 decimal places.)
2. Compute the Shadee’s budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)
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6.
value:
9.09 points
Required information
Each visor requires a total of $5.00 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 26 closures on hand on May 1, 21 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $12 per hour.
Additional information:
Selling costs are expected to be 6 percent of sales.
Fixed administrative expenses per month total $1,500.
Required:
Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Hints
References
eBook & Resources
Hint #1
Check my work
7.
value:
9.09 points
Required information
Each visor requires a total of $5.00 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 26 closures on hand on May 1, 21 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $12 per hour.
Additional information:
Selling costs are expected to be 6 percent of sales.
Fixed administrative expenses per month total $1,500.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.80.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Explanation / Answer
As per policy, only one question is allowed to answer at a time, so answering Q4 :
4) Direct Labor hours used: May = CI 60+SI 520-OI 60 = 520 June = CI 70+SI 310- OI 60=320 Direct labor cost : May = 520*0.70*12 = $4368 June = 320*0.70*12=$2688Related Questions
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