Question
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
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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 $109,000 per month Depreciation $10,000 per month Direct labor rate $18 per hour
Prepare a flexible budget for 5,000, 13,000, and 20,000 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 5,000 13,000 20,000 Variable costs: Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salariesDirect labor
$ 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
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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 | $109,000 per month |
| Depreciation | $10,000 per month |
| Direct labor rate | $18 per hour |
Prepare a flexible budget for 5,000, 13,000, and 20,000 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 | 5,000 | 13,000 | 20,000 | |||
| Variable costs: | ||||||
| Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salariesDirect labor | $ 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 | |||
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