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.
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.