Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand
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Steel per filing cabinet ....... 45 pounds
Direct labor per filing cabinet .... 20 minutes
Supervisor salaries .... $140,000 per month
Depreciation ....... $22,000 per month
Direct labor rate ......... $21 per hour
Steel cost .......... $1.45 per pound
Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of October 2010, similar to Exhibit 5, assuming that inventories are not significant.
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