Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand
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Question:
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:
Direct labor per filing cabinet | 20 minutes |
Supervisor salaries | $117,000 per month |
Depreciation | $32,000 per month |
Direct labor rate | $24 per hour |
Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of March similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers.
Cabinaire Inc-Assembly Department | |||
Flexible Production Budget | |||
Month Ending March 31 (assumed data) | |||
Units of production | 12,000 | 15,000 | 18,000 |
Variable cost: | |||
Direct labor | $ | $ | $ |
Total variable cost | $ | $ | $ |
Fixed cost: | |||
Supervisor salaries | $ | $ | $ |
Depreciation | |||
Total fixed cost | $ | $ | $ |
Total department cost | $ | $ | $ |
Related Book For
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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