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 30 minutes Supervisor salaries $135,000 per month Depreciation $18,000 per month Direct labor rate $12 per hour Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your final answers to the whole dollar, if required. Cabinaire Inc. Assembly Department Budget For the Month Ending February 28 (assumed data) 13,000 15,000 Units of production 10,000 Variable cost: $ Total variable cost Fixed cost: $1 $ $ Total fixed $ Total department costs

Answer 1

Answer

Units of production	10000	13000	15000
Variable costs:
Direct Labor cost [Units x Hours per unit x $ 12]	$60,000	$78,000	$90,000
Total Variable cost	$60,000	$78,000	$90,000
Fixed Costs:
Supervisor Salaries	$135,000	$135,000	$135,000
Depreciation	$18,000	$18,000	$18,000
Total Fixed cost	$153,000	$153,000	$153,000
Total Department costs	$213,000	$231,000	$243,000

Answer 2

how did you get the total department cost