1. 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	$150,000 per month
Depreciation	$17,000 per month
Direct labor rate	$12 per hour

Prepare a flexible budget for 15,000, 19,000, and 23,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers.

Cabinaire Inc. Assembly Department Budget Month Ending March 31 (assumed data)

Units of production	15,000	19,000	23,000
Variable cost:
Direct labor	$fill in	$ fill in	$ fill in
Total variable cost	$fill in the blank 5	$fill in the blank 6	$fill in the blank 7
Fixed cost:
Supervisor salaries	$fill in	$ fill in	$ fill in
Depreciation	fill in	fill in	fill in
Total fixed cost	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18
Total department costs	$fill in the blank 19	$fill in the blank 20	$fill in the blank 21

2.

Romanos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	12,600		20,900

There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

		12" Pizza		16" Pizza
Direct materials:
	Dough	0.90	lb. per unit	1.50	lbs. per unit
	Tomato	0.60		1.00
	Cheese	0.80		1.30

In addition, Romano's has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	650	lbs.	220	lbs.	370	lbs.
Desired inventory, September 30	680	lbs.	210	lbs.	400	lbs.
Price per pound	$1.00		$2.50		$3.00

Prepare September's direct materials purchases budget for Romanos Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Romanos Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30

	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	fill in the blank 1	fill in the blank 2	fill in the blank 3
16" pizza	fill in the blank 4	fill in the blank 5	fill in the blank 6
Desired inventory, September 30	fill in	fill in	fil in
Total units available	fill in the blank 11	fill in the blank 12	fill in the blank 13
Estimated inventory, September 1	fill in	fill in	fill in
Total units to be purchased	fill in the blank 18	fill in the blank 19	fill in the blank 20
Unit Price	x $fill in the blank 21	x $fill in the blank 22	x $fill in the blank 23
Total direct materials to be purchased	$fill in the blank 24	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27