Flexible budget for Assembly DepartmentSteelcase Inc. is one of the largest manufacturers of office furniture inthe United States. In Grand Rapids, Michigan, it assembles filingcabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinetSupervisor salariesDepreciationDirect labor rate 12 minutes$150,000 per month$24,500 per month$22 per hour Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets forthe month of August in the Assembly Department.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Flexible budget for Assembly Department
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 Supervisor salaries Depreciation Direct labor rate |
12 minutes $150,000 per month $24,500 per month $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.
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