Steelcase Inc. (SCS) 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 minutes

Supervisor salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000 per month

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,500 per month

Direct labor rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $28 per hour

Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.

Exhibit 5:

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Performance Perspectives Learning and Internal Processes Customer Financial Growth Strategic Objectives Reduce Reduce Delight the customer Train employees Increase Improve delivery shipping errors employee turnover times profits Tie pay to training hurdles Automate warehouse Strategic Initiatives Percentage lof customers who shop again Median training hours per Performance Metrics Önline customer satisfaction rating Average employee tenure Hours from ordered to delivered Number of erroneous shipments Market share Operating profit employee 100 hrs. Performance 2.2 yrs. $57 million 60 hrs. 2 per wk. 9.4 1.31% 45% Targets