Question
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
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 | $150,000 per month |
| Depreciation | $31,000 per month |
| Direct labor rate | $24 per hour |
Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers.
| Units of production | 12,000 | 15,000 | 18,000 |
| Variable cost: | |||
| Direct labor | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Total variable cost | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 |
| Fixed cost: | |||
| Supervisor salaries | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
| Depreciation | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Total fixed cost | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
| Total department cost | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
