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	50 pounds
Direct labor per filing cabinet	30 minutes
Supervisor salaries	$150,000 per month
Depreciation	$20,000 per month
Direct labor rate	$18 per hour
Steel cost	$1.32 per pound

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Prepare a flexible budget for 14,000, 18,000, and 21,000 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		14,000		18,000		21,000
Variable cost:
Direct labor		$ Correct 10		$ Correct 11		$ Correct 12
Direct materials		Correct 14		Correct 15		Correct 16
Total variable cost		$ Correct 18		$ Correct 19		$ Correct 20
Fixed cost:
Supervisor salaries		$ Correct 23		$ Correct 24		$ Correct 25
Depreciation		Correct 27		Correct 28		Correct 29
Total fixed cost		$ Correct 31		$ Correct 32		$ Correct 33
Total department cost		$ Correct 35		$ Correct 36		$ Correct 37