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Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Please help Fixed Budget Sales (16,000 units \times $215 per unit) 3,440,000 Costs Direct materials 400,000 Direct labor 672,000 Indirect materials 416,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 250,000 Depreciation-Office equipment 220,000 Insurance 190,000 Office rent 200,000 Income 540,000 Compute total variable cost per unit.? Compute total fixed costs.? 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. Please help Fixed Budget Sales (16,000 units \times $215 per unit) 3,440,000 Costs Direct materials 400,000 Direct labor 672,000 Indirect materials 416,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 250,000 Depreciation-Office equipment 220,000 Insurance 190,000 Office rent 200,000 Income 540,000 Compute total variable cost per unit.? Compute total fixed costs.? Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Please help Fixed Budget Sales (16,000 units \times $215 per unit) 3,440,000 Costs Direct materials 400,000 Direct labor 672,000 Indirect materials 416,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 250,000 Depreciation-Office equipment 220,000 Insurance 190,000 Office rent 200,000 Income 540,000 Compute total variable cost per unit.? Compute total fixed costs.? Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Please help Fixed Budget Sales (16,000 units \times $215 per unit) 3,440,000 Costs Direct materials 400,000 Direct labor 672,000 Indirect materials 416,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 250,000 Depreciation-Office equipment 220,000 Insurance 190,000 Office rent 200,000 Income 540,000 Compute total variable cost per unit.? Compute total fixed costs.? Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
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