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Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.

Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $218 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $218 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 16,000 units and 20,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 Compute total variable cost per unit. Total variable cost per unit Required 1 Required 2 >
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $218 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 16,000 units and 20,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 Compute total variable cost per unit. Total variable cost per unit Required 1 Required 2 >
Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $218 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 16,000 units and 20,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute total fixed costs. Total fixed costs Required 1 Required 2 Required 3 Required 3 Variable costs Fixed costs Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 Required 1 TEMPO COMPANY < Required 2 Flexible Budget Variable Amount Total Fixed per Unit Cost 0.00 $ Flexible Budget for: Units Sales Unit Sales of 16,000 of 20,000 0 $ Required 3 > Required 3 0 0 $ 0 0
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units × $218 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 16,000 units and 20,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute total fixed costs. Total fixed costs Required 1 Required 2 Required 3 Required 3 Variable costs Fixed costs Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. 3,924,000 432,000 774,000 504,000 232,000 144,000 252,000 282,000 252,000 222,000 232,000 598,000 Required 1 TEMPO COMPANY < Required 2 Flexible Budget Variable Amount Total Fixed per Unit Cost 0.00 $ Flexible Budget for: Units Sales Unit Sales of 16,000 of 20,000 0 $ Required 3 > Required 3 0 0 $ 0 0
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