Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units x $207 per unit) Costs Direct materials Direct labor Indirect materials 3,312,000 384,000 688,000 416,000 Supervisor salary 184,000 Sales commissions 112,000 Shipping 256,000 Administrative salaries 234,000 Depreciation-Office equipment 204,000 Insurance 174,000 Office rent 184,000 Income 476,000 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 $207 per unit) Costs Direct materials Direct labor Indirect materials 3,312,000 384,000 688,000 416,000 Supervisor salary 184,000 Sales commissions 112,000 Shipping 256,000 Administrative salaries 234,000 Depreciation-Office equipment 204,000 Insurance 174,000 Office rent 184,000 Income 476,000 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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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 16,000 units) folllows.
Fixed Budget
Sales (16,000 units x $207 per unit)
Costs
Direct materials
Direct labor
Indirect materials
3,312,000
384,000
688,000
416,000
Supervisor salary
Sales commissions
Shipping
184,000
112,000
256,000
Administrative salaries
234,000
Depreciation-Office equipment
204,000
Insurance
174,000
Office rent
184,000
Income
476,000
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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