Question

Flexible Budget for Assembly Department Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following Information for the Assembly Department: un Direct labor per filing cabinet 30 minutes Supervisor salaries Depreciation $141,000 per month $32,000 per month $12 per hour Direct labor rate Prepare a flexible budget for 9,000, 11,000, and 14,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers. Cabinaire Inc. Assembly Department Budget Month Ending March 31 (assumed data) Units of production 9,000 11,000 14,000 Variable cost: Direct labor isi Total variable cost Fixed cost: Supervisor salaries OD QUI Depreciation Total fixed cost Total department costs

Answer 1

Assembly department Budget

Month ending March 31 (assumed data)

Units of production	9000	11000	14000
Variable cost
Direct labor	54000	66000	84000
Total variable cost	54000	66000	84000
Fixed cost
Supervisor salaries	141000	141000	141000
Depreciation	32000	32000	32000
Total fixed cost	173000	173000	173000
Total department costs	227000	239000	257000