Shadee Corporation expects to sell 510 sun shades in May and 440 in June. Each shade sells for $147. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 510 sun shades in May and 440 in June. Each shade sells for $147. Shadee's
beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods
inventory for June will be 60 shades.
E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d]
Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's
fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced.
Required:
1. Prepare Shadee's direct labor budget for May and June.
2. Prepare Shadee's manufacturing overhead budget for May and June.
Transcribed Image Text:[The following information applies to the questions displayed below.] Shadee Corporation expects to sell 510 sun shades in May and 440 in June. Each shade sells for $147. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June.
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