Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand
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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 cabine ...................30 minutes
Supervisor salaries ................. $180,000 per month
Depreciation ..........................$15,000 per month
Direct labor rate .............................$24 per hour
Prepare a flexible budget for 10,000, 25,000, and 40,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant.
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