Shade Corp. expects to sell 560 sun visors in May and 410 in June. Each visor sells for $26. Shade's beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will
be 65 units. Each visor requires a total of $5.00 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 29 closures on hand on May 1, 22 closures on May 31, and 22 closures on June 30.
Additionally, Shade's fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $1.00 per unit
Required:
1. Determine Shade's budgeted cost of closures purchased for May and June.
2. Determine Shade's budget manufacturing overhead for May and June.