Tempo Company's fixed budget (based on sales of 10,000 units) follows. Fixed Budget Sales (10,00 units x $202 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment 2,020,000 250,000 430,000 270,000 50,000 80,000 150,000 100,000 70,000 40,000 50,000 Insurance office rent 530,000 Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.

Tempo Company's fixed budget (based on sales of 10,000 units) follows. Fixed Budget Sales (10,00 units x $202 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment 2,020,000 250,000 430,000 270,000 50,000 80,000 150,000 100,000 70,000 40,000 50,000 Insurance office rent 530,000 Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.

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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