4. 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 cabinet20 minutesSupervisor salaries$120,000 per monthDepreciation$22,000 per monthDirect labor rate$12 per hour Prepare a flexible budget for 13,000, 16,000, and 20,000o filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5.Assuming that inventories are not significant. Enter all amounts as positive numbers.CABINAIRE INC-ASSEMBLY DEPARTMENTFlexible Production BudgetFor the Month Ending August 31 (assumed data)Units of production13,00016,00020,000Variable cost:Direct laborTotal variable costFixed cost:Supervisor salariesDepreciationTotal fixed costTotal department cost%24%24

Total department cost is the total cost incurred by a particular department including fixed and…

Answered: Cabinaire Inc. is one of the largest…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. 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	20 minutes
Supervisor salaries	$120,000 per month
Depreciation	$22,000 per month
Direct labor rate	$12 per hour

Prepare a flexible budget for 13,000, 16,000, and 20,000o filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5.
Assuming that inventories are not significant. Enter all amounts as positive numbers.
CABINAIRE INC-ASSEMBLY DEPARTMENT
Flexible Production Budget
For the Month Ending August 31 (assumed data)
Units of production
13,000
16,000
20,000
Variable cost:
Direct labor
Total variable cost
Fixed cost:
Supervisor salaries
Depreciation
Total fixed cost
Total department cost
%24
%24

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