Tempo Company's fixed budget (based on sales of 18,000 units) folllows.Fixed BudgetXSales (18,000 units × $216 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation Office equipmentInsuranceOffice rentIncome3,888,000432,000774,000486,000232,000Required 1126,000270,0001. 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.Required 2 Required 3282,000252,000222,000232,000580,000Complete this question by entering your answers in the tabs below.

A flexible budget is a budget that adjusts or flexes based on changes in activity levels or other…

Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $216 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,888,000 432,000 774,000 486,000 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. Required 1 232,000 126,000 270,000 282,000 252,000 222,000 232,000 580,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3

Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $216 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,888,000 432,000 774,000 486,000 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. Required 1 232,000 126,000 270,000 282,000 252,000 222,000 232,000 580,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...

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Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Direct materials purchased during the year, 854,000; beginning inventory of direct materials, 31,000; and ending inventory of direct materials, 26,000. Totals from other budgets included:
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