Flexible Budget for Fabrication Department

Cabinaire 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 Trim Assembly. Assume the following information for the Fabrication Department:

Steel per filing cabinet	32 pounds
Direct labor per filing cabinet	30 minutes
Supervisor salaries	$126,000 per month
Depreciation	$25,000 per month
Direct labor rate	$15 per hour
Steel cost	$1.45 per pound

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Prepare a flexible budget for 13,000, 16,000, and 20,000 filing cabinets for the month of October 2014, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers.

Cabinaire Inc-Fabrication Department
Flexible Production Budget
October 2014 (assumed data)
Units of production		13,000		16,000		20,000
Variable cost:
Direct labor		$		$		$
Direct materials
Total variable cost		$		$		$
Fixed cost:
Supervisor salaries		$		$		$
Depreciation
Total fixed cost		$		$		$
Total department cost		$		$		$