CengageNOWv2 Online teaching and learning resource from Cengage Learning Interme

Question

CengageNOWv2 Online teaching and learning resource from Cengage Learning Intermet Explorer m#3-Chapter 6 Calculator Print Item Flexible Budget for Fabrication Department Cabinaire 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 Trim Assembly. Assume the following information for the Fabrication Department Steel per fiing cabinet Direct labor per filing cabinet Supervisor salaries 32 pounds 20 minutes $129,000 per month $29,000 per month 12 per hour Direct labor rate Steel cost Prepare a fiexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month of October 2016, similar to Exhibit 5, assuming that inventories are $1.35 per pound not signíficant. Enter all amounts as positive numbers Cabinaire Inc-Fabrication Department Flexible Production Dudget October 2016 (assumed data) Units of production10,000 13,000 15,000

Explanation / Answer

Statement showing computations Units of Production 10,000 Units 13,000 Units 15,000 Units Variable Costs: Direct Labor = Units * 12 * 20/60             40,000.00            52,000.00            60,000.00 Direct Materials = Units * 32 * 1.35           432,000.00         561,600.00         648,000.00 Total Variable Costs           472,000.00         613,600.00         708,000.00 Fixed Costs: Supervisor Salaries           129,000.00         129,000.00         129,000.00 Depreciation             29,000.00            29,000.00            29,000.00 Total Fixed Costs           158,000.00         158,000.00         158,000.00 Total Department Costs           630,000.00         771,600.00         866,000.00

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.