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 filing cabinet 20 minutes Supervisor salaries Depreciation $132,000 per month $24,000 per month $15 per hour Direct labor rate Prepare a flexible budget for 8,000, 10,000, and 12,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers. Cabinaire Inc. Assembly Department Budget Month Ending March 31 (assumed data) Units of production 8,000 10,000 Variable cost: Direct labor 12,000 Total variable cost Fixed cost: Supervisor salaries Depreciation Total fixed cost TI Total department costs Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used 730 hrs. Actual rate for direct labor $14.3 per hr. Bicycles completed in April 340 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $14.6 per hr. a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Favorable 0 Direct Labor Time Variance Unfavorable 0 Total Direct Labor Cost Variance Unfavorable b. How much direct labor should be debited to Work in Process? Feedback