Steelcase Inc

Subject:AccountingPrice:2.89 Bought3

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Steelcase Inc. is one of the largest manufactures 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 .............. $ 160,000 per month
Deprecation ................ $25,000 per month
Direct labor rate ............... $23 per hour
Steel cost ................. $1.85 per pound
Prepare a flexible budget for 12,000, 15,000 and 18,000 filing cabinets for the month of October 2012, similar to Exhibit 5, assuming inventories are not significant.