Flexible Budget for Assembly Department 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 30 minutes
Supervisor salaries $138,000 per month
Depreciation $17,000 per month
Direct labor rate $21 per hour
Prepare a flexible budget for 13,000, 16,000, and 20,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your final answers to the whole dollar, if required.
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