Tempo Company's fixed budget (based on sales of 12,000 units) folllows.Fixed BudgetSales (12,000 units x $203 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-Office equipmentInsuranceOffice rentIncome2,436,000276,000516,000324,00076,00084,000192,000126,00096,00066,00076,000604,000S1. 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.Required 1 Required 2 Required 3Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.TEMPO COMPANYFlexible BudgetVariable Amountper UnitTotal FixedCostFlexible Budget for:Units Sales Unit Sales ofof 10,000 14,000

1. Compute total variable cost per unit: Total variable costs include direct materials, direct…

Answered: Tempo Company's fixed budget (based on…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs. Fixed Budget Sales (8,000 × $730 per unit) Costs Direct materials Direct labor Indirect materials Supervisory salary Sales commissions Shipping Administrative salaries Depreciation - Office equipment Insurance Office rent Income Multiple Choice O O O $752,000. $618,000. $1,076,000. $ 5,840,000 584,000 968,000 354,000 134,000 284,000 312,000 424,000 74,000 44,000 76,000 $ 2,586,000
Vishal empo Company's fixed budget (based on sales of 14,000 units) folllows.Fixed BudgetSales (14,000 units × $207 per unit)2,898,000Costs Direct materials336,000Direct labor602,000Indirect materials364,000Supervisor salary136,000Sales commissions112,000Shipping210,000Administrative salaries186,000Depreciation—Office equipment156,000Insurance126,000Office rent136,000Income534,000 1. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Flexible BudgetFlexible Budget for: Variable Amount per UnitTotal Fixed CostUnits Sales of 12,000Unit Sales of 16,000Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs0.00 00Contribution margin Fixed costs Supervisor salary Administration salaries…
N1. Account
A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (10% of sale) Salaries expense Miscellaneous expense-5% of sales Rent expense Utilities expense Insurance expense Depreciation expense Mar $120,000 12,000 33,000 6,000 3,900 2,000 2,700 4,400 OA. $53,900 OB. $50,500 OC. $45,400 OD. $56,400 Apr $80,000 8,000 33.000 4,000 3.900 2,000 2,700 4,400 May $130,000 13,000 33,000 6.500 3.900 2,000 2,700 4,400 Jun $110,000 11,000 33,000 5,500 3,900 2,000 2,700 4,400 The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on…
4. Use the following terms in preparing the budget: Insurance Maintenance Utilities Depreciation Expense Sales Commissions Depreciation Indirect Material Maintenance Salaries Indirect Labor Supervisory Salaries Sales Salaries Insurance Expense Spree Party Lights overhead expenses are: Indirect material, pounds per unit 0.25 Indirect material, cost per pound $ 2 Indirect labor hours 1 Indirect labor rate per hour $16.50 Variable maintenance per unit $0.75 Variable utilities per unit $0.20 Supervisor salaries $10,000 Maintenance salaries $9,000 Insurance $3,000 Depreciation $1,500 PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown…
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Prepare a budgeted income statement using the information shown. Sales (units) Sales price per unit Uncollectible expense Direct material per unit Direct labor per unit (hours) Direct labor rate per hour Manufacturing overhead Variable sales and administration expenses per unit Fixed sales and administration expenses 15,000 2$ 40 1%* 2$ 0.5 $ $15,000 $ 2 $20,000 15%** 20 Таxes *of sales **of income before taxes
subject:accounting
H1. Account
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