1. 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	30 minutes
   Supervisor salaries	$120,000 per month
   Depreciation	$29,000 per month
   Direct labor rate	$24 per hour

   Prepare a flexible budget for 11,000, 14,000, and 17,000 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	11,000	14,000	17,000
   Variable cost:
   Direct labor Depreciation Direct labor Supervisor salaries Rent Utilities	$	$	$
   Total variable cost	$	$	$
   Fixed cost:
   Direct labor Electric power Rent Supervisor salaries Wages	$	$	$
   Depreciation Direct labor Insurance Utilities Wages
   Total fixed cost	$	$	$
   Total department costs	$	$	$

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