empo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units × $219 per unit) 2,190,000 Costs Direct materials 250,000 Direct labor 440,000 Indirect materials 260,000 Supervisor salary 50,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 100,000 Depreciation—Office equipment 70,000 Insurance 40,000 Office rent 50,000 Income 700,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
empo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units × $219 per unit) 2,190,000 Costs Direct materials 250,000 Direct labor 440,000 Indirect materials 260,000 Supervisor salary 50,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 100,000 Depreciation—Office equipment 70,000 Insurance 40,000 Office rent 50,000 Income 700,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Tempo Company's fixed budget (based on sales of 10,000 units) folllows.
| Fixed Budget | |
| Sales (10,000 units × $219 per unit) | 2,190,000 |
|---|---|
| Costs | |
| Direct materials | 250,000 |
| Direct labor | 440,000 |
| Indirect materials | 260,000 |
| Supervisor salary | 50,000 |
| Sales commissions | 80,000 |
| Shipping | 150,000 |
| Administrative salaries | 100,000 |
| 70,000 | |
| Insurance | 40,000 |
| Office rent | 50,000 |
| Income | 700,000 |
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
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