Flexible Budget for Fabrication Department Steelcase 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 Assembly. Assume the following information for the Assembly Department: Direct labor per filing cabinet 30 minutes Supervisor salaries $144,000 per month Depreciation $33,000 per month Direct labor rate $18 per hour Prepare a flexible budget for 8,000, 10,000, and 12,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers. Steelcase Inc. - Assembly Department Month Ending August 31 (Assumed Data) Units of production 8,000 10,000 12,000 Variable cost: Direct labor v Fixed cost: Supervisor salarles v Denreclatinn
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 Fabrication Department
Steelcase 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 Assembly. Assume the following information for the Assembly Department:
Direct labor per filing cabinet
30 minutes
Supervisor salaries
$144,000 per month
Depreciation
$33,000 per month
Direct labor rate
$18 per hour
Prepare a flexible budget for 8,000, 10,000, and 12,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not
significant. Enter all amounts as positive numbers.
Steelcase Inc. - Assembly Department
Month Ending August 31
(Assumed Data)
Units of production
8,000
10,000
12,000
Variable cost:
Direct labor v
Fixed cost:
Supervisor salaries v
Denreclatin
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V O 11:13](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2e00a1e-b5fd-4f37-8fb5-202195af0c43%2Ffb2543ce-89a9-45a0-8e47-51a6f13ade04%2F3yfim2_processed.jpeg&w=3840&q=75)
![Prepare a flexible budget for 8,000, 10,000, and 12,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not
significant. Enter all amounts as positive numbers.
Steelcase Inc. - Assembly Department
Month Ending August 31
(Assumed Data)
Units of production
8,000
10,000
12,000
Variable cost:
Direct labor v
Fixed cost:
Supervisor salaries v
Depreciation
Total fixed cost
Total department cost
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For each level of cabinet production, show all variable costs and all fixed costs.
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0 0000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2e00a1e-b5fd-4f37-8fb5-202195af0c43%2Ffb2543ce-89a9-45a0-8e47-51a6f13ade04%2Fct08os_processed.jpeg&w=3840&q=75)
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Flexible budget is that budget which can be changed as per level of activity.
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