Exercise 23-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Sales (12,000 units Costs Insurance office rent Fixed Budget Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Income $219 per unit) Required 1 Required 2 Compute total fixed costs. Total fixed costs 2,628,000 288,000 528,000 312,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Required 3 88,000 96,000 180,000 138,000 Complete this question by entering your answers in the tabs below. 108,000 78.000 88,000 724.000 < Required 1 Required 3 >
Exercise 23-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Sales (12,000 units Costs Insurance office rent Fixed Budget Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Income $219 per unit) Required 1 Required 2 Compute total fixed costs. Total fixed costs 2,628,000 288,000 528,000 312,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Required 3 88,000 96,000 180,000 138,000 Complete this question by entering your answers in the tabs below. 108,000 78.000 88,000 724.000 < Required 1 Required 3 >
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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Transcribed Image Text:Exercise 23-3 (Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units $219 per unit)
Costs
Direct materials
Direct labor
Indirect materials
ANANU
Supervisor salary
100
Sales commissions
CHIAR
Shipping
Administrative salaries
Depreciation-office equipment
Insurance
Office rent
Income
Required 1 Required 2 Required 3
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
Compute total fixed costs.
Complete this question by entering your answers in the tabs below.
Total fixed costs
Required 1 Required 2
Variable costs
2,628,000
Required 3
Fixed costs
288,000
528,000
312,000
88,000
96,000
180,000
138,000
108.000
78,000
88,000
724,000
Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
TEMPO COMPANY
< Required 1
< Required 2
Required 3 >
Flexible Budget
ible Budget for:
Variable Amount Total Fixed Units Sales Unit Sales of
per Unit
Cost
of 10,000 14,000
Transcribed Image Text:Exercise 23-3 (Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units $219 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-office equipment
Insurance
office rent
Income
Required 1
2,628,000
288,000
528,000
312,000
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
Required 2 Required 3
88,000
96,000
180,000
138,000
Complete this question by entering your answers in the tabs below.
Compute total variable cost per unit.
Total variable cost per unit
108,000
78,000
88,000
724,000
Required 2 >
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