empo Company's fixed budget (based on sales of 14,000 units) follows. Fixed Budget Sales (14,000 units x $202 per unit) 2,828,000 Costs Direct materials 350,000 Direct labor 602,000 Indirect materials 378,000 Supervisor salary 150,000 Sales commissions 126,000 Shipping 210,000 Administrative salaries 200,000 Depreciation-office 170,000 equipment Insurance 140,000 Office rent 150,000 Income 352,000 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. Complete this question by entering your answers in the tabs below.

empo Company's fixed budget (based on sales of 14,000 units) follows. Fixed Budget Sales (14,000 units x $202 per unit) 2,828,000 Costs Direct materials 350,000 Direct labor 602,000 Indirect materials 378,000 Supervisor salary 150,000 Sales commissions 126,000 Shipping 210,000 Administrative salaries 200,000 Depreciation-office 170,000 equipment Insurance 140,000 Office rent 150,000 Income 352,000 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. Complete this question by entering your answers in the tabs below.

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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The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target income of $130,000. Sales (50,000 units) $1,000,000 Costs: Direct materials $ 270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 Income 920,000 $ 80,000 O a. 53,165. O b. 81,250. Oc 36,207. O d. 50,000. Oe. 58,621.
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