empo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed BudgetSales (14,000 units × $207 per unit)2,898,000Costs Direct materials336,000Direct labor602,000Indirect materials364,000Supervisor salary136,000Sales commissions112,000Shipping210,000Administrative salaries186,000Depreciation—Office equipment156,000Insurance126,000Office rent136,000Income534,000 1. 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. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.       TEMPO COMPANY Flexible BudgetFlexible Budget for: Variable Amount per UnitTotal Fixed CostUnits Sales of 12,000Unit Sales of 16,000Sales    Variable costs    Direct materials    Direct labor    Indirect materials    Sales commissions    Shipping         Total variable costs0.00 00Contribution margin    Fixed costs    Supervisor salary    Administration salaries    Depreciation—Office equipment    Insurance    Office rent         Total fixed costs $0$0$0Income

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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empo Company's fixed budget (based on sales of 14,000 units) folllows.
Fixed BudgetSales (14,000 units × $207 per unit)2,898,000Costs Direct materials336,000Direct labor602,000Indirect materials364,000Supervisor salary136,000Sales commissions112,000Shipping210,000Administrative salaries186,000Depreciation—Office equipment156,000Insurance126,000Office rent136,000Income534,000

1. 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.

Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

      TEMPO COMPANY Flexible BudgetFlexible Budget for: Variable Amount per UnitTotal Fixed CostUnits Sales of 12,000Unit Sales of 16,000Sales    Variable costs    Direct materials    Direct labor    Indirect materials    Sales commissions    Shipping         Total variable costs0.00 00Contribution margin    Fixed costs    Supervisor salary    Administration salaries    Depreciation—Office equipment    Insurance    Office rent         Total fixed costs $0$0$0Income 

 

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