Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units x $212 per unit) Costs Direct materials Direct labor Indirect materials 3,392,000 384,000 688,000 432,000 Supervisor salary Sales commissions Shipping 184,000 144,000 240,000 Administrative salaries 234,000 Depreciation-Office equipment 204,000 Insurance 174,000 Office rent 184,000 Income 524,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit
Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units x $212 per unit) Costs Direct materials Direct labor Indirect materials 3,392,000 384,000 688,000 432,000 Supervisor salary Sales commissions Shipping 184,000 144,000 240,000 Administrative salaries 234,000 Depreciation-Office equipment 204,000 Insurance 174,000 Office rent 184,000 Income 524,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tempo Company's fixed budget (based on sales of 16,000 units) folllows.
Fixed Budget
Sales (16,000 units x $212 per unit)
Costs
Direct materials
Direct labor
Indirect materials
3,392,000
384,000
688,000
432,000
Supervisor salary
Sales commissions
Shipping
184,000
144,000
240,000
Administrative salaries
234,000
Depreciation-Office equipment
204,000
Insurance
174,000
Office rent
184,000
Income
524,000
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Compute total variable cost per unit.
Total variable cost per unit
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