Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units × $202 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance Office rent Income 3,232,000 400,000 688,000 448,000 200,000 128,000 224,000 250,000 220,000 190,000 200,000 284,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units × $202 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance Office rent Income 3,232,000 400,000 688,000 448,000 200,000 128,000 224,000 250,000 220,000 190,000 200,000 284,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 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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please note that there are three required questions for this one.
Transcribed Image Text:Required 1 Required 2 Required 3
Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
Variable costs
Fixed costs
TEMPO COMPANY
Flexible Budget
Variable Amount Total Fixed
per Unit
Cost
< Required 2
Flexible Budget for:
Units Sales Unit Sales of
of 14,000 18,000
Required 3 >
Transcribed Image Text:Exercise 21-3 (Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 16,000 units) folllows.
Fixed Budget
Sales (16,000 units × $202 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. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
Required 1 Required 2 Required 3
3,232,000
Complete this question by entering your answers in the tabs below.
Compute total variable cost per unit.
400,000
688,000
448,000
200,000
128,000
224,000
250,000
220,000
190,000
200,000
284,000
Total variable cost per unit
< Required 1
Required 2 >
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