22.4

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 filling cabinet 30 minutes Supervisor salaries $144,000 per month Depreciation $19,000 per month Direct labor rate $24 per hour Prepare a flexible budget for 15,000, 19,000, and 23,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Cabinaire Inc-Assembly Department Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 15,000 23,000 Variable cost: Direct labor Fixed cost: Supervisor salaries Depreciation 19,000 Total fixed cost Total department cost