empo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $207 per unit) Costs Direct materials Indirect materials Direct labor Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,726,000 450,000 756,000 504,000 250,000 144,000 252,000 300,000 270,000 240,000 250,000 310,000 . Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
empo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $207 per unit) Costs Direct materials Indirect materials Direct labor Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,726,000 450,000 756,000 504,000 250,000 144,000 252,000 300,000 270,000 240,000 250,000 310,000 . Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Tempo Company's fixed budget (based on sales of 18,000 units) folllows.
Fixed Budget
Sales (18,000 units × $207 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-Office equipment
Insurance
Office rent
Income
3,726,000
450,000
756,000
504,000
250,000
144,000
252,000
300,000
270,000
240,000
250,000
310,000
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Required 3
Compute total variable cost per unit.
Total variable cost per unit
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