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 20 minutes Supervisor salaries $129,000 per month Depreciation $25,000 per month Direct labor rate $21 per hour Prepare a flexible budget for 15,000, 19,000, and 23,000 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 15,000 19,000 23,000 Variable cost: $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Fixed cost: $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 fill in the blank 10 fill in the blank 11 fill in the blank 12 Total fixed cost $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 Total department cost $fill in the blank 16 $fill in the blank 17 $fill in the blank 18
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various 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 | 20 minutes |
| Supervisor salaries | $129,000 per month |
| $25,000 per month | |
| Direct labor rate | $21 per hour |
Prepare a flexible budget for 15,000, 19,000, and 23,000 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 | 15,000 | 19,000 | 23,000 |
| Variable cost: | |||
| $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | |
| Fixed cost: | |||
| $fill in the blank 6 | $fill in the blank 7 | $fill in the blank 8 | |
| fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | |
| Total fixed cost | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
| Total department cost | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
