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 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
Fixed cost: | |||
Supervisor salaries | $fill in the blank 6 | $fill in the blank 7 | $fill in the blank 8 |
Depreciation | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
Total fixed cost | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
Total department costs | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
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