Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $209 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance office rent Income 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 126,000 136,000 548,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
please answer do not image format
Tempo Company's fixed budget (based on sales of 14,000 units) folllows.
Fixed Budget
x $209 per unit)
Sales (14,000 units
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary.
Sales commissions
Shipping
Administrative salaries
Depreciation office equipment
Insurance
Office rent
Income
Required 1
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.
Complete this question by entering your answers in the tabs below.
Compute total variable cost per unit.
Total variable cost per unit
Required 2 Required 31
Required 1 Required 21
Variable costs
Fixed costs
2,926,000
336,000
588,000
378,000
136,000
112,000
224,000
186,000
156,000
+
126,000
136,000
548,000
Required 3
< Required 1
Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.
TEMPO COMPANY
Required 2 >
Flexible Budget
Variable Amount Total Fixed
Cost
per Unit
< Required 2
Flexible Budget for:
Units Sales Unit Sales of
16,000
of 12,000
Required 3 >
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget x $209 per unit) Sales (14,000 units Costs Direct materials Direct labor Indirect materials Supervisor salary. Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income Required 1 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. Complete this question by entering your answers in the tabs below. Compute total variable cost per unit. Total variable cost per unit Required 2 Required 31 Required 1 Required 21 Variable costs Fixed costs 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 + 126,000 136,000 548,000 Required 3 < Required 1 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Required 2 > Flexible Budget Variable Amount Total Fixed Cost per Unit < Required 2 Flexible Budget for: Units Sales Unit Sales of 16,000 of 12,000 Required 3 >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education