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 |
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.