Direct laborTempo Company's fixed budget (based on sales of 14,000 units) folllows.Fixed BudgetSales (14,000 units x $215 per unit)CostsDirect materialsIndirect materials3,010,000350,000602,000364,000Supervisor salary150,000Sales commissions112,000Shipping210,000Administrative salaries200,000Depreciation-Office equipment170,000Insurance140,000Office rent150,000Income562,0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.Variable costsTEMPO COMPANYFlexible BudgetVariable Amountper UnitTotal FixedCostFlexible Budget for:Units Sales Unit Sales ofof 12,000 16,00020

Step 1: Introduction to budgetingBudgeting is defined as the process of preparing a financial plan…

Answered: Direct labor Tempo Company's fixed…

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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Difference A company has numerous products and currently absorbs its production overheads based on labour hours; it has the following information: G H All products Budget (units) 2,400 3,000 Labour hours (£10/ hour) 1 hour 0.2 hours 1,000,000 Material cost / unit £2.00 £3.50 Material requisitions 4 8 4,000 Number of batches 6 3 10,000 Overheads are budgeted as £2,500,000 for production set-up related and £1,200,000 for materials handling and storage related. Required: Calculate the unit cost for products G and H if the company was to adopt activity based costing and comment on the difference.
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Sales price $91 Direct material per unit 31 Direct labor per unit 16 Variable manufacturing overhead per unit 13 Fixed manufacturing overhead per unit 77,000 Variable sales and admin expenses per unit 4 Fixed sales and admin expenses per unit 24,000 Taxes 30%* *of income before taxes Prepare a flexible budgeted income for 100,000 units using the above information from a static budget for 80,000 units: Flexible Budgeted Income Statement $- Select - Cost of Goods Sold - Select - - Select - - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - - Select - $- Select -
Master Actual Budget Sales (units) 800,000 780,000 Sales Revenue 6,000,000.47 5,790,000.59 Variable Costs Blank flash drives 1,800,000.24 1,800,000.44 Direct labor 420,000.55 495,000.94 Variable overhead 780,000.24 717,000.34 Variable marketing & admin 600,000.48 615,000.75 Total Variable Costs 3,600,001.51 3,627,002.47 Contribution Margin 2,399,998.96 2,162,998.12 Fixed Costs Manufacturing overhead 1,164,000.68 1,164,000.68 Marketing 360,000.38 360,000.38 Administrative 195,000.92 195,000.92 Total Fixed Costs 1,719,001.98 1,719,001.98 Profit 680,996.98 443,996.14 Calculate a flexible budget and…
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Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $430,000 $170,000 $45,000 $76,000 Square footage 2,500 5,000 5,000 Number of receiving orders 320 1,900 1,200 Direct labor hours 28,000 45,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratios: Assembly Finishing Square footage Number of receiving orders
Q19 Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 266,000 $ 450,000 $ 716,000 Variable Costs 192,000 225,000 417,000 Contribution Margin $ 74,000 $ 225,000 $ 299,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 24,000 $ 117,000 $ 141,000 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 280,000 $ 470,000 $ 750,000 Variable Costs 154,000 188,000 342,000 Contribution Margin $ 126,000 $ 282,000 $ 408,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 76,000 $ 174,000 $ 250,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The firm's market size variance for the period…
Channel Computer budgeted the following manufacturing costs for 50,000 computers: Fixed manufacturing costs Php 200,000 per month Variable manufacturing costs Php 32.00 per unit The total manufacturing cost for 50,000 computers is as follows: Variable manufacturing cost (50,000 x P32 ) Php 1,600,000 Fixed manufacturing cost 200.000 Total Php 1,480.000 Channel Computers produced 40.000 computers during March. How much are budgeted total manufacturing costs in March?
6. Prepare a budgeted income statement using the information shown. Sales units 84,000 22 Sales price per unit Uncollectible expense Direct material per unit Direct labor hours per unit Direct labor rate per hour Manufacturing overhead Variable sales and administration expenses per unit sold Fixed sales and administration expenses 1% $4 $ 1.50 0.8 19 $14,000 $ 2.10 $23,000 Тахes 15%* *of income before taxes %24
Answer all the parts otherwise don't solve it. Accounting This is the budget for the year ended 30 April 2021 for company XTZ Total production & sales = 2400units Selling price per unit = $1200 Variable manufacturing costs : Direct labour = $192 ; Direct material = $288 ; Overheads = $96 Fixed manufacture overheads = $216,960 Other : Fixed marketing & admin cost = $144,000 Sales commission = 5% 4) If the company earns a net profit of $298,920 ; How many units were sold 5) If expected sales volume is 2400units, what is the sales price per unit which will allow the company to break even?
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