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	$144,000 per month
Depreciation	$16,000 per month
Direct labor rate	$12 per hour

Prepare a flexible budget for 9,000, 11,000, and 14,000 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	9,000	11,000	14,000
Variable cost:
	$	$	$
Total variable cost	$	$	$
Fixed cost:
	$	$	$
Total fixed cost	$	$	$
Total department costs	$	$	$