Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,052,000 322,000 602,000 378,000 122,000 98,000 210,000 172,000 142,000 112,000 122,000 772,000 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
Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,052,000 322,000 602,000 378,000 122,000 98,000 210,000 172,000 142,000 112,000 122,000 772,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 14,000 units) folllows.
Sales (14,000 units
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Insurance
Office rent
Fixed Budget
Administrative salaries
Depreciation-office equipment
Income
$218 per unit)
3,052,000
322,000
602,000
378,000
122,000
98,000
210,000
172,000
142,000
112,000
122,000
772,000
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.
Transcribed Image Text:Required 1 Required 2 Required 3
Compute total variable cost per unit.
Total variable cost per unit
Required 1 Required 2
Compute total fixed costs.
Total fixed costs
Complete this question by entering your answers in the tabs below.
Sales
Varble costs
Direct materials
D
Indirectes
Sales commissions
Shoping
Required 1 Require
Required 3
Prepare a flexible budget at activity levels of 12,000 units and 16,000 units
Tal variable costs
Contadon margin
Food co
Super salary
Administration sala
Depreciation Office equipment
Insurance
Required 3
Total fled costs
came
Required
< Required 1
TEMPO COMPANY
Variable Amount Total Fixed
per Unit
Cast
214.00
Required 2
0.00
Required 2 >
0$
Flexible Budget for
Units Sales Unit Sales of
of 12.000
16.000
******
Required 3 >
05
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