Managerial Accounting: E6-4 Steelcase Inc. is one of the largest manufacturers

Managerial Accounting
E6-4 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 Trim Assembly. Assume the following information for the Fabrication Department:
Steel per filing cabinet 50 pounds
Direct labor per filing cabinet 18 minutes
Supervisor salaries $130,000 per month
Depreciation $20,000 per month
Direct labor rate $16 per hour
Steel Cost $1.25 per pound

Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of October 2008, similar to Exhibit 5, assuming that inventories are not significant.
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