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.
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.
![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 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc746fc46-4193-4786-aefe-a0152ec44e08%2Fa6ea0a81-520a-4195-b9cc-d0d097944977%2Fb57xbgw_processed.jpeg&w=3840&q=75)
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