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
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 | $132,000 per month |
| Depreciation | $31,000 per month |
| Direct labor rate | $24 per hour |
Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers.
| CABINAIRE INC-ASSEMBLY DEPARTMENT | |||
| Flexible Production Budget | |||
| For the Month Ending August 31 (assumed data) | |||
| Units of production | 10,000 | 13,000 | 15,000 |
| Variable cost: | |||
| Direct labor | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Total variable cost | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 |
| Fixed cost: | |||
| Supervisor salaries | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
| Depreciation | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Total fixed cost | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
| Total department cost | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
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Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
