Flexible Budget for Assembly Department Cabinaire Inc. is one of the largest man
ID: 2557154 • Letter: F
Question
Flexible Budget for Assembly Department
Cabinaire 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:
Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers.
Direct labor per filing cabinet 20 minutes Supervisor salaries $144,000 per month Depreciation $33,000 per month Direct labor rate $15 per hourExplanation / Answer
Cabinaire Inc.
Assembly Department Budget
Month Ending March 31 (assumed data)
Units of production
10,000
13,000
15,000
Variable cost:
Direct labor
$ 50,000
$ 65,000
$ 75,000
Total variable cost
$ 50,000
$ 65,000
$ 75,000
Fixed cost:
Supervisor salaries
$ 1,44,000
$ 1,44,000
$ 1,44,000
Depreciation
$ 33,000
$ 33,000
$ 33,000
Total fixed cost
$ 1,77,000
$ 1,77,000
$ 1,77,000
Total department costs
$ 2,27,000
$ 2,42,000
$ 2,52,000
**Direct Labour
10000 Units = 15/60 x 20 x 10000 = $ 50,000
13000 Units = 15/60 x 20 x 13000 = $ 65,000
15000 Units = 15/60 x 20 x 15000 = $ 75,000
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ALL THE BEST !!!
Cabinaire Inc.
Assembly Department Budget
Month Ending March 31 (assumed data)
Units of production
10,000
13,000
15,000
Variable cost:
Direct labor
$ 50,000
$ 65,000
$ 75,000
Total variable cost
$ 50,000
$ 65,000
$ 75,000
Fixed cost:
Supervisor salaries
$ 1,44,000
$ 1,44,000
$ 1,44,000
Depreciation
$ 33,000
$ 33,000
$ 33,000
Total fixed cost
$ 1,77,000
$ 1,77,000
$ 1,77,000
Total department costs
$ 2,27,000
$ 2,42,000
$ 2,52,000
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