Tempo Company's fixed budget (based on sales of 12,000 units) folllows.Fixed BudgetSales (12,000 units × $201per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-OfficeequipmentInsuranceOffice rentIncome2,412,0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.288,000504,000324,00088,000108,000168,000138,000108,00078,00088,000520,000Complete this question by entering your answers in the tabs below.SalesVariable costsRequired Required Required123Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.Fixed costsTEMPO COMPANYFlexible BudgetVariableAmount perUnit< Required 20.00TotalFixedCost$Flexible Budgetfor:UnitUnitsSales of Sales of10,000 14,0000 $00 $Required 3 >00

The budget is defined as a static budget or flexible budget. The static budget is based on the fixed…

Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $201 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 2,412,000 288,000 504,000 324,000 Sales Variable costs 88,000 108,000 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. Fixed costs 168,000 138,000 108,000 78,000 88,000 520,000 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Flexible Budget Total Fixed Cost Variable Amount per Unit < Required 2 0.00 $ Flexible Budget for: Unit Units Sales of Sales of 10,000 14,000 0 $ 0 0 $ Required 3 > 0 0

Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $201 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 2,412,000 288,000 504,000 324,000 Sales Variable costs 88,000 108,000 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. Fixed costs 168,000 138,000 108,000 78,000 88,000 520,000 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Flexible Budget Total Fixed Cost Variable Amount per Unit < Required 2 0.00 $ Flexible Budget for: Unit Units Sales of Sales of 10,000 14,000 0 $ 0 0 $ Required 3 > 0 0

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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