Question

1) Flexible Budget for Assembly Department

Steelcase Inc. (SCS) 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	18 minutes
Supervisor salaries	$250,000 per month
Depreciation	$18,500 per month
Direct labor rate	$28 per hour

Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.

eBook Show Me How Calculator Flexible Budget for Assembly Department Steelcase Inc. (SCS) 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 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a feble budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5. Steelcase Inc. Assembly Department Budget For the Month Ending February 28 (assumed data) Units of production Variable cost: Total variable cost Foed cost: OD d UJQ00 Total department costs . For each level of cabinet production, whow all variable cools and all fred costs Check My Work Previous Next > A saved Save and be submit Amigert for Grade

2) Production Budget

Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
Northern Region unit sales	40,000		25,000
Southern Region unit sales	75,000		35,000
Total	115,000		60,000

The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,800 and 8,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 15,000 and 7,500 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

3) Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

	Rumble		Thunder
Estimated inventory (units), June 1	750		300
Desired inventory (units), June 30	500		250
Expected sales volume (units):
Midwest Region	12,000		3,500
South Region	14,000		4,000
Unit sales price	$60		$90

Answer 1

Answer is given below

Steelcase Inc. Assembly Department Budget For the month ending February 28 (assumed date) units of production 70,000 80,000 Variable Cost $588,000 $672,000 Total Variable cost $588,000 $672,000 Fixed Cost Supervisor salaries $250,000 $250,000 Deprecation $18,500 $18,500 Total fixed cost $268,500 $268,500 Total Departmental costs $856,500 $940,500 90,000 $756,000 $756,000 A $250,000 $18,500 $268,500 B $1,024,500 A+B working notes: 70,000 80,000 18 Units Minutes per filling Total minutes Total hours Rate per hour Total variable cost 1,260,000 21,000 $28 $588,000 1,440,000 24,000 $280 $672,000 90,000 18 1,620,000 27,000 $28 $756,000 Healthy Measure Inc. Production Budget For the month ending March 31 Units Bath Scale Units Gym Scale Sales units 115,000 60,000 Add: Closing stock 15,000 7,500 Total units available 130,000 67,500 Less: Opening stock -11,800 -8,100 Total units to be produced 118,200 59,400 Total Sales Sonic Inc Sales Budget For the month ending June 30 Units Sales Unit Selling volume price Model: Rumble Midwest Region 12,000 $60 South Region 14,000 $60 Total 26,000 Model : Thunder Midwest Region 3,500 South Region 4,000 Total Total revenue from Sales $720,000 $840,000 $1,560,000 $315,000 $360,000 $675,000 $2,235,000 7,500 Sonic Inc. Production Budget For the month ending June 30 Units RumbleUnits Thunder Sales units 26,000 7,500 Add: Closing stock 500 250 Total units available 26,500 Less: Opening stock -750 -300 Total units to be produced 25,750 7,750 7,450