Business, 08.04.2020 01:36 smilequi9653
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 33 closures on hand on May 1, 23 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.90 direct labor hours to produce and Shadee pays its workers $10 per hour. Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,200. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $2.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
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