Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States....
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Accounting
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: Direct labor per filing cabinet 20 minutes Supervisor salaries $135,000 per month Depreciation $16,000 per month Direct labor rate $18 per hour Prepare a flexible budget for 9,000, 11,000, and 14,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers. CABINAIRE INC-ASSEMBLY DEPARTMENT Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 9,000 11,000 14,000 Variable cost: Direct labor $ $ $ Total variable cost $ $ $ Fixed cost: Supervisor salaries $ $ $ Depreciation Total fixed cost $ $ $ Total department cost
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