Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.Fixed BudgetSales (16,000 units x $215 per unit)Cost of goods sold$3,440,000$384,000672,000416,000184,000Direct materialsDirect laborProduction suppliesPlant manager salaryGross profitSelling expenses1,656,0001,784,000Sales commissions144,000224,000PackagingAdvertisingAdministrative expenses100,000468,000Administrative salaries234,000204,000174,000Depreciation-office equip.InsuranceOffice rent184,000796,000Income from operations$ 520,000(1) Compute the total variable cost per unit.(2) Compute the total fixed costs.(3) Compute the income from operations for sales volume of 14,000 units.(4) Compute the income from operations for sales volume of 18,000 units.

Hi studentSince there are multiple subparts, we will answer only first three subparts. If you want…

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,440,000 Sales (16,000 units x $215 per unit) Cost of goods sold $384,000 672,000 416,000 184,000 Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 144,000 224,000 100,000 Sales commissions Packaging Advertising Administrative expenses Administrative salaries 468, 000 234,000 204,000 174,000 184,000 Depreciation-office equip. Insurance Office rent 796,000 Income from operations $ 520,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units.

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,440,000 Sales (16,000 units x $215 per unit) Cost of goods sold $384,000 672,000 416,000 184,000 Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 144,000 224,000 100,000 Sales commissions Packaging Advertising Administrative expenses Administrative salaries 468, 000 234,000 204,000 174,000 184,000 Depreciation-office equip. Insurance Office rent 796,000 Income from operations $ 520,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Sales (14,000 units × $215 per unit) $ 3,010,000 Cost of goods sold Direct materials $ 322,000 Direct labor 588,000 Production supplies 392,000 Plant manager salary 122,000 1,424,000 Gross profit 1,586,000 Selling expenses Sales commissions 112,000 Packaging 224,000 Advertising 100,000 436,000 Administrative expenses Administrative salaries 172,000 Depreciation—office equip. 142,000 Insurance 112,000 Office rent 122,000 548,000 Income from operations $ 602,000 Total variable cost per unit = 117 Total fixed cost per unit = 770,000 Questions: Compute the income from operations for sales volume of 12,000…
Hansaben
The following sales were budgeted for the year: Product A Product B Product C Demand (units) 1,000 2,000 3,000 Selling price $15 $20 $30 Profit per unit $2 $5 $2 Actual sales for the year showed the following results: Product A Product B Product C Units sold 1,100 2,050 2,800 Sales value $17,050 $38,950 $86,800 Profit $3,080 $10,455 $6,160 What is the sales mix variance? $2,292 Adverse $1,845 Favorable $200 Favorable $50 Favorable
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,500 direct labor-hours will be required in January. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3,750. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Group of answer choices $55,510 $12,500 $51,760 $39,260
Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units × $219 per unit) 2,190,000 Costs Direct materials 250,000 Direct labor 440,000 Indirect materials 260,000 Supervisor salary 50,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 100,000 Depreciation—Office equipment 70,000 Insurance 40,000 Office rent 50,000 Income 700,000 1. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
A company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Cost per Variable Cost per Month Unit Serviced Revenue $4,800 $1,100 $700 Wages expense $40,200 Materials expense Other expenses $29,600 When the company prepared its planning budget at the beginning of November, it assumed that 28 units would be serviced, however the actual number of units serviced in November was 26. Actual revenue during November was $131,500. The revenue activity variance is: O $6,700F. $9,600F. $9,600U. O $2,900U.
Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the following. Fixed Budget Sales (7,000 units × $400 per unit) $ 2,800,000 Cost of goods sold Direct materials $ 280,000 Direct labor 490,000 Production supplies 175,000 Plant manager salary 65,000 1,010,000 Gross profit 1,790,000 Selling expenses Sales commissions 140,000 Packaging 154,000 Advertising 125,000 419,000 Administrative expenses Administrative salaries 85,000 Depreciation—office equip. 35,000 Insurance 20,000 Office rent 36,000 176,000 Income from operations $ 1,195,000 (1) Compute the total variable cost per unit.(2) Compute the total fixed costs.(3) Compute the income from operations for sales volume of…
Subject: accounting
Crane Corporation's master budget for the year is shown below: Sales (60,700 units) Cost of goods sold: Direct materials Direct labor Overhead (variable overhead applied at 45% of direct labor cost) Gross profit Selling expenses: Sales commissions (all variable) Rent (all fixed) Insurance (all short-term fixed) General expenses: Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) Operating income $ 212,450 497,740 247,000 Required 1 $ 160,248 47,000 37,000 Required 2 95,500 80,500 57,000 $ 2,306,600 957,190 $ 1,349,410 Required: 1. During the year, the company manufactured and sold 55,700 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,700 units. Prepare a flexible budget for this output level. 477, 248 $ 872,162 Complete this question by entering your answers in the tabs below. During the year, the company manufactured and sold 55,700 units of product. Prepare a…
am. 118.
The following are the budgeted and actual income statements for Tucan Ltd, a manufacturing business, for the month of January: Budget Output (production and sales) Sales revenue Raw materials Labour Fixed overheads Operating profit Output (production and sales) Sales revenue Raw materials Labour Fixed overheads 5,000 units Flexed budget £ 500,000 200,000 150,000 70,000 80,000 £ units Actual 6,000 units £ 630,000 270,000 150,000 78,000 132,000 C
empo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $202 per unit) $ 3,232,000 Cost of goods sold Direct materials $ 400,000 Direct labor 704,000 Production supplies 416,000 Plant manager salary 200,000 1,720,000 Gross profit 1,512,000 Selling expenses Sales commissions 128,000 Packaging 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 184,000 1.Compute the total variable cost per unit. 2. Compute the total fixed costs. 3.Compute the income from operations for sales volume of…