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Accounting

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Shadee Corp. expects to sell 590 sun visors in May and 410 in June. Each visor sells for $21. Shadees beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units.

Each visor requires a total of $5.50 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 31 closures on hand on May 1, 17 closures on May 31, and 23 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.25 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $11 per hour.

Additional information:

Selling costs are expected to be 10 percent of sales.

Fixed administrative expenses per month total $1,300.

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.)

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