Question
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 | $138,000 per month |
Depreciation | $21,000 per month |
Direct labor rate | $12 per hour |
Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your final answers to the whole dollar, if required.
Units of production | 10,000 | 13,000 | 15,000 |
Variable cost: | |||
DepreciationDirect laborSupervisor salariesRentUtilitiesDirect labor | $Direct labor | $Direct labor | $Direct labor |
Total variable cost | $fill in the blank 5 | $fill in the blank 6 | $fill in the blank 7 |
Fixed cost: | |||
Direct laborElectric powerRentSupervisor salariesWages | $- Select - | $- Select - | $- Select - |
DepreciationDirect laborInsuranceUtilitiesWages | - Select - | - Select - | - Select - |
Total fixed cost | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
Total department costs |
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