Developmental Mathematics (3rd Edition)
3rd Edition
ISBN: 9780321936875
Author: Elayn Martin-Gay
Publisher: PEARSON
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Tempo Company's fixed budget (based on sales of 18,000 units) folllows
Fixed Budget
Sales (18,000 units x $201 per unit)
3,618,000
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
432,000
792,000
486,000
232,000
Sales commissions
126,000
Shipping
270,000
Administrative salaries
232,000
Depreciation-office equipment
252,000
Insurance
222,000
Office rent
232,000
Income
292,000
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.
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