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 $2.00 each. Shade wants to have 25 closures on hand on May 1, 18 closures on May 31, and 25 closures on June 30. Additionally, Shade's fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is
$2.75 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shade pays its workers $8 per hour.
Additional information:
• Selling costs are expected to be 6 percent of sales
• Fixed administrative expenses per month total $1,600.
Required: Determine Shade's budgeted selling and administrative expenses for May and June.