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SB Exercise E8-5 to E8-10 Skip to question [The following information applies to...

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Accounting

SB Exercise E8-5 to E8-10
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[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 530 sun shades in May and 450 in June. Each shade sells for $155. Shadees beginning and ending finished goods inventories for May are 85 and 50 shades, respectively. Ending finished goods inventory for June will be 65 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 $13 per hour. Additionally, Shadees fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $10 per unit produced.
Required:
Prepare Shadees direct labor budget for May and June.
Prepare Shadees manufacturing overhead budget for May and June.

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