d Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units x $214 per unit) Costs Direct materials Direct labor Indirect materials 3,424,000 368,000 688,000 432,000 Supervisor salary 168,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 218,000 Depreciation-Office equipment 188,000 Insurance 158,000 Office rent 168,000 Income 684,000 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
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d
Tempo Company's fixed budget (based on sales of 16,000 units) folllows.
Fixed Budget
Sales (16,000 units x $214 per unit)
Costs
Direct materials
Direct labor
Indirect materials
3,424,000
368,000
688,000
432,000
Supervisor salary
168,000
Sales commissions
112,000
Shipping
240,000
Administrative salaries
218,000
Depreciation-Office equipment
188,000
Insurance
158,000
Office rent
168,000
Income
684,000
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.
Transcribed Image Text:d Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units x $214 per unit) Costs Direct materials Direct labor Indirect materials 3,424,000 368,000 688,000 432,000 Supervisor salary 168,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 218,000 Depreciation-Office equipment 188,000 Insurance 158,000 Office rent 168,000 Income 684,000 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.
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