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Flexible budget for assembly department

Steelcase Inc. (SCS) 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:

Line Item Description	Value
Direct labor per filing cabinet	18 minutes
Supervisor salaries	$250,000 per month
Depreciation	$18,500 per month
Direct labor rate	$28 per hour

Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 4.

Steelcase Inc. Assembly Department Budget For the Month Ending February 28 (assumed data)

Line Item Description	Amount	Amount	Amount
Units of production	70,000	80,000	90,000
Variable cost:
Direct labor
Total variable cost
Fixed cost:
Supervisor salaries
Depreciation
Total fixed cost
Total department costs