Exerclse 8-3 (Algo) Preparing flexlble budgets LO P1Tempo Company's fixed budget (based on sales of 16,000 units) folllows.Fixed Budget3,312, 800Sales (16, 689 units x $207 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-OFfice equipmentInsuranceOffice rent384, 000704, 000448, 000184, B00112, e00240, 000234,000204,000174, 0e0184,000Income444, 0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Compute total variable cost per unit.Total variable cost per unit900Required 2 > Tempo Company's fixed budget (based on sales of 16,000 units) follows.Fixed BudgetSales (16, ee0 units x $207 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-OFfice equipmentInsuranceOffice rent3, 312, e00384, 000704, 00e448, eee184, 000112, 800240, 800234, 000204, 000174, 000184, вее444, 8eeIncome1. Compute total variable cost per unit.2 Compute total fixed costs.3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.O Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.TEMPO COMPANYFlexible BudgetFlexible Budget for:VariableAmount perUnit207.00 OUnitsTotal FixedCostSales of14,000UnitSales of18,000Sales2,808.0003.720,000Variable costsDirect materials24.00 O330,000432,000Direct labor44.00 O7.00 O616,000792,000Sales commissions98,000210,000 O120,000270,000 OShipping15.00 O90.001,200.0001.620,000Contribution margin1,638,000 2,108,000 8117.00Fooed costs

Budget refers to the estimation of the incomes and expenses for a specified future period as per the…

Answered: 1. Compute total variable cost per…

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8.
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