=+EX 22-3 Static budget vs.

flexible budget objs. 2, 4

✔

b. Excess of actual over budget for March, $53,000 Chapter 22 Budgeting 1025 Steelcase Inc. is one of the largest manufacturers of office furniture in the United States.

In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Trim Assembly. Assume the following information for the Fabrication Department:

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