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 $180,000 per month Depreciation $15,000 per month Direct labor rate $24 per hour Prepare a flexible budget for 10,000, 25,000, and 40,000 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 10,000 25,000 40,000 Variable cost: Direct labor $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
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 | $180,000 per month |
| $15,000 per month | |
| Direct labor rate | $24 per hour |
Prepare a flexible budget for 10,000, 25,000, and 40,000 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 | 10,000 | 25,000 | 40,000 |
| Variable cost: | |||
| Direct labor | $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 |
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