Flexible Budget for Assembly Department

Blue Chair Inc. is one of the largest manufacturers of office furniture in the United States. In Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:

Line Item Description Amount

Direct labor per filing cabinet $30$ minutes

Supervisor salaries $$132,000$ per month

Depreciation $$23,000$ per month

Direct labor rate $$12$ per hour

Prepare a flexible budget for $11,000,14,000,$ and $17,000$ filing cabinets for the month of August, similar to Exhibit $5,$ assuming that inventories are not significant. Enter all amounts as positive numbers.