Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand
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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 departments: Fabrication and Assembly. Assume the following information for the Assembly Department:
Direct labor per filing cabinet | 30 minutes |
Supervisor salaries | $90,000 per month |
Depreciation | $7,500 per month |
Direct labor rate | $24 per hour |
Prepare a flexible budget for 5,000, 12,500, 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 | |||
Month Ending August 31 | |||
(Assumed Data) | |||
Units of production | 5,000 | 12,500 | 20,000 |
Variable cost: | |||
Direct labor | |||
Fixed cost: | |||
Supervisor salaries | |||
Depreciation | |||
Total fixed cost | $ | ||
Total department costs | $ |
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