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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 $1.50 each.
Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced.
Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)
2. Determine Shadee's budget manufacturing overhead for May and June. (Round your answers to 2 decimal places.)
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