Tempo Company's fixed budget (based on sales of 14,000 units) folllows Fixed Budget Sales (14,000 units x $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3,052,000 336,000 602,000 378,000 136,000 98,000 210,000 186,000 156,000 126,000 136,000 688,000 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Sales Variable costs Direct labor Direct materials Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed costs Administration salaries Depreciation Office equipment Insurance Office rent Supervisor salary Total fixed costs Income TEMPO COMPANY Flexible Budget Variable Amount Total Fixed per Unit Cost $ 218.00 $ 0.00 Flexible Budget for: Units Sales Unit Sales of 12,000 of 16,000 $2,616,000 $ 3,488,000 < Required 2 43.00 516,000 688,000 24.00 288,000 384,000 27.00 324,000 432,000 7.00 84,000 112,000 15.00 180,000 240,000 116.00 102.00 1,392,000 1,856,000 1,224,000 1,632,000 0 $ $
Tempo Company's fixed budget (based on sales of 14,000 units) folllows Fixed Budget Sales (14,000 units x $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3,052,000 336,000 602,000 378,000 136,000 98,000 210,000 186,000 156,000 126,000 136,000 688,000 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Sales Variable costs Direct labor Direct materials Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed costs Administration salaries Depreciation Office equipment Insurance Office rent Supervisor salary Total fixed costs Income TEMPO COMPANY Flexible Budget Variable Amount Total Fixed per Unit Cost $ 218.00 $ 0.00 Flexible Budget for: Units Sales Unit Sales of 12,000 of 16,000 $2,616,000 $ 3,488,000 < Required 2 43.00 516,000 688,000 24.00 288,000 384,000 27.00 324,000 432,000 7.00 84,000 112,000 15.00 180,000 240,000 116.00 102.00 1,392,000 1,856,000 1,224,000 1,632,000 0 $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 14,000 units) folllows
Fixed Budget
Sales (14,000 units x $218 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-Office equipment
Insurance
Office rent
Income
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3,052,000
336,000
602,000
378,000
136,000
98,000
210,000
186,000
156,000
126,000
136,000
688,000
3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.
Sales
Variable costs
Direct labor
Direct materials
Indirect materials
Sales commissions
Shipping
Total variable costs
Contribution margin
Fixed costs
Administration salaries
Depreciation Office equipment
Insurance
Office rent
Supervisor salary
Total fixed costs
Income
TEMPO COMPANY
Flexible Budget
Variable Amount Total Fixed
per Unit
Cost
$
218.00 $
0.00
Flexible Budget for:
Units Sales Unit Sales
of 12,000 of 16,000
$2,616,000 $ 3,488,000
< Required 2
43.00
516,000
688,000
24.00
288,000
384,000
27.00
324,000
432,000
7.00
84,000
112,000
15.00
180,000
240,000
116.00
102.00
1,392,000
1,856,000
1,224,000 1,632,000
0 $
$
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