Answer:
Note: Per unit Direct labour cost = $15 /60 minutes * 30 minutes
=$7.5
Steelcase Inc
Assembly Department
Flexible budget for the month of August, 2016
Unit of Production Per Unit No. of filling cabinet
18,000 20,000 22,000
Variable cost
Direct labour cost 7.5 135,000 150,000 165,000
Total variable cost A 135,000 150,000 165,000
Fixed cost
Supervisor salaries 150,000 150,000 150,000
Depreciation 31,000 31,000 31,000
Total fixed cost B 181,000 181,000 181,000
Total Departmental Cost A+B 316,000 331,000 346,000
Per unit Department Cost 17.55 16.55 15.72
Note: Per unit department cost = Total department cost / No of filling cabinet
