Flexible Budget for Assembly Department Cabinaire Inc. is one of the largest manufacturers of office...
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Accounting
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:
| Direct labor per filing cabinet | 30 minutes |
| Supervisor salaries | $138,000 per month |
| Depreciation | $16,000 per month |
| Direct labor rate | $18 per hour |
Prepare a flexible budget for 8,000, 10,000, and 12,000 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) |
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