Shadee Corporation expects to sell 530 sun shades in May and 310 in June. Each shade sells for $162. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 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.
Shadee Corporation expects to sell 530 sun shades in May and 310 in June. Each shade sells for $162. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shadee Corporation expects to sell 530 sun
shades in May and 310 in June. Each shade
sells for $162. Shadee's beginning and
ending finished goods inventories for May
are 75 and 50 shades, respectively. Ending
finished goods inventory for June will be
55 shades. Suppose that each shade takes
three direct labor hour to produce and
Shadee pays its workers $14 per hour.
Additionally, Shadee's fixed manufacturing
overhead is $10,000 per month, and
variable manufacturing overhead is $10
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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