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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 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 2,580,000 288,000 516,000 312,000 88,000 96,000 180,000 138,000 108,000 78,000 88,000 688,000 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.

Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 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 2,580,000 288,000 516,000 312,000 88,000 96,000 180,000 138,000 108,000 78,000 88,000 688,000 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.

FINANCIAL ACCOUNTING
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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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $215 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 Required 2 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. Sales Variable costs Complete this question by entering your answers in the tabs below. Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed costs Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Supervisor salary Administration salaries Depreciation Office equipment Insurance Office rent 2,580,000 Required 3 Total fixed costs Income 288,000 516,000 312,000 88,000 96,000 180,000 138,000 108,000 78,000 88,000 688,000 $ TEMPO COMPANY Flexible Budget Variable Amount per Unit $ < Required 2 215.00 24.00 43.00 26.00 8.00 15.00 116.00 99.00 Total Fixed Cost 88,000 138,000 108,000 78,000 88,000 Flexible Budget for: Units Sales Unit Sales of of 10,000 14,000 $2,150,000 $3,010,000 240,000 430,000 260,000 80,000 150,000 1,160,000 1,624,000 990,000 1,386,000 88,000 138,000 108,000 78,000 88,000 336,000 602,000 364,000 112,000 210,000 Required 3 > 88,000 138,000 108,000 78,000 88,000 $ 500,000 $ 500,000 $500,000
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $215 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 Required 2 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. Sales Variable costs Complete this question by entering your answers in the tabs below. Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed costs Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Supervisor salary Administration salaries Depreciation Office equipment Insurance Office rent 2,580,000 Required 3 Total fixed costs Income 288,000 516,000 312,000 88,000 96,000 180,000 138,000 108,000 78,000 88,000 688,000 $ TEMPO COMPANY Flexible Budget Variable Amount per Unit $ < Required 2 215.00 24.00 43.00 26.00 8.00 15.00 116.00 99.00 Total Fixed Cost 88,000 138,000 108,000 78,000 88,000 Flexible Budget for: Units Sales Unit Sales of of 10,000 14,000 $2,150,000 $3,010,000 240,000 430,000 260,000 80,000 150,000 1,160,000 1,624,000 990,000 1,386,000 88,000 138,000 108,000 78,000 88,000 336,000 602,000 364,000 112,000 210,000 Required 3 > 88,000 138,000 108,000 78,000 88,000 $ 500,000 $ 500,000 $500,000
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