Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget $216 per unit) Sales (12,000 unite Costs Direct materials Direct labor Indirect materiale Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-ottice equipment Insurance office rent Income 2,592,000 280,000 520,000 336,000 80,000 96,000 168,000 Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit 138,000 100,000 70,000 88,000 676,000 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. Complete this question by entering your answers in the tabs below.
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget $216 per unit) Sales (12,000 unite Costs Direct materials Direct labor Indirect materiale Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-ottice equipment Insurance office rent Income 2,592,000 280,000 520,000 336,000 80,000 96,000 168,000 Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit 138,000 100,000 70,000 88,000 676,000 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. Complete this question by entering your answers in the tabs below.
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:Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units $216 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary.
Sales commissions
Shipping
Administrative salaries
Depreciation office equipment
Insurance
office rent
Income
Required 2 Required 3
Compute total variable cost per unit.
Total variable cost per unit
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 1
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute total fixed costs.
Total fixed costs
Required 1 Required 2
2,592,000
280,000
520,000
340,000
336,000
Variable costs
Required 3
Fixed costs
80,000
96,000
160,000
138,000
108,000
70,000
BB,000
676,000
Required 3
Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
TEMPO COMPANY
Flexible Budget
Variable Amount Total Fixed
per Unit
Cost
Required 2
Flexible Budget for:
Units Sales Unit Sales of
of 10,000
14,000
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