Flexible Budget for Assembly Department

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

Direct labor per filing cabinet	20 minutes
Supervisor salaries	$108,000 per month
Depreciation	$10,000 per month
Direct labor rate	$18 per hour

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

Prepare a flexible budget for 8,000, 20,000, and 32,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers.

STEELCASE INC.
Assembly Department Budget
Month Ending August 31
(Assumed Data)
Units of production		8,000		20,000		32,000
Variable costs:
Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salaries		$ fill in the blank 3		$ fill in the blank 4		$ fill in the blank 5
Fixed costs:
Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salaries		$ fill in the blank 7		$ fill in the blank 8		$ fill in the blank 9
DepreciationDirect laborDirect materialsIndirect laborIndirect materials		fill in the blank 11		fill in the blank 12		fill in the blank 13
Total fixed cost		$ fill in the blank 14		$ fill in the blank 15		$ fill in the blank 16
Total department costs		$ fill in the blank 17		$ fill in the blank 18		$ fill in the blank 19