)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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