Exercise 21-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $215 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,870,000 414,000 774,000 486,000 214,000 126,000 270,000 264,000 234,000 204,000 214, ᎾᎾᎾ 670,000 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.
Exercise 21-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $215 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,870,000 414,000 774,000 486,000 214,000 126,000 270,000 264,000 234,000 204,000 214, ᎾᎾᎾ 670,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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Exercise 21-3 (Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 18,000 units) folllows.
Fixed Budget
Sales (18,000 units x $215 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-Office equipment
Insurance
office rent
Income
3,870,000
414,000
774,000
486,000
214,000
126,000
270,000
264,000
234,000
204,000
214,000
670,000
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.
Transcribed Image Text:ces
it
nces
Inces
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
Compute total variable cost per unit.
Total variable cost per unit
Required 3
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
Compute total fixed costs.
Total fixed costs
< Required 1
Variable costs
Fixed costs
Required 2 >
< Required 1
Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
TEMPO COMPANY
< Required 2
Flexible Budget
Flexible Budget for:
Variable Amount Total Fixed Units Sales Unit Sales of
per Unit
Cost
of 16,000 20,000
Required 3 >
Required 3 >
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