Steelcase 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 12 minutes Supervisor salaries $150,000 per month Depreciation $24,500 per month Direct labor rate $22 per hour Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Steelcase Inc.-Assembly Department Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 18,000 20,000 22,000 Variable cost: Direct labor Fixed cost: Supervisor salaries $4 $4 Depreciation Total fixed cost $ 24 Total department cost
Steelcase 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 12 minutes Supervisor salaries $150,000 per month Depreciation $24,500 per month Direct labor rate $22 per hour Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Steelcase Inc.-Assembly Department Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 18,000 20,000 22,000 Variable cost: Direct labor Fixed cost: Supervisor salaries $4 $4 Depreciation Total fixed cost $ 24 Total department cost
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4E
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