1. 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	$123,000 per month
Depreciation	$16,000 per month
Direct labor rate	$18 per hour

Prepare a flexible budget for 10,000, 13,000, and 15,000 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	10,000	13,000	15,000
Variable cost:
	$	$	$
Total variable cost	$	$	$
Fixed cost:
	$	$	$
Total fixed cost	$	$	$
Total department costs	$	$	$

2.

Production Budget

Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
East Region unit sales	23,800		36,900
West Region unit sales	25,700		27,000
Total	49,500		63,900

The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,800 and 2,600 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,300 and 2,800 units, respectively.

Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Weightless Inc.
Production Budget
For the Month Ending October 31
	Units Bath Scale	Units Gym Scale
Total
Total units to be produced

3.

Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

	Rumble		Thunder
Estimated inventory (units), June 1	288		84
Desired inventory (units), June 30	331		73
Expected sales volume (units):
Midwest Region	3,750		3,300
South Region	5,700		6,450
Unit sales price	$130		$200

a. Prepare a sales budget.

Sonic Inc.
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region		$	$
South Region
Total			$
Model: Thunder
Midwest Region		$	$
South Region
Total			$
Total revenue from sales			$

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Total
Total units to be produced