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 assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:

Direct labor per filing cabinet	12 minutes
Supervisor salaries	$150,000 per month
Depreciation	$24,500 per month
Direct labor rate	$22 per hour

Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5.

STEELCASE INC.ASSEMBLY DEPARTMENT
Flexible Production Budget
For the Month Ending August 31(assumed data)
Units of production	18,000	20,000	22,000
Variable cost:
Direct labor	$	$	$
Total variable cost	$	$	$
Fixed cost:
Supervisor salaries	$	$	$
Depreciation
Total fixed cost	$	$	$
Total department cost	$	$	$