Question: Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 33 closures on hand on May 1, 21 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers per hour.
Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Round your answer to 2 decimal places.)
2. Compute the Shadee's budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)