Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units x $209 per unit) Costs Direct materials Direct labor Indirect materials 2,090,000 240,000 430,000 280,000 Supervisor salary 40,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 90,000 Depreciation-office equipment 60,000 Insurance 30,000 Office rent 40,000 Income 650,000 ces 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost $ $ 2,090,000.00 2,090,000.00 Flexible Budget for: Units Sales Unit Sales of of 8,000 12,000 $1,672,000 $ 2,508,000 240,000.00 240,000 240,000

Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units x $209 per unit) Costs Direct materials Direct labor Indirect materials 2,090,000 240,000 430,000 280,000 Supervisor salary 40,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 90,000 Depreciation-office equipment 60,000 Insurance 30,000 Office rent 40,000 Income 650,000 ces 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost $ $ 2,090,000.00 2,090,000.00 Flexible Budget for: Units Sales Unit Sales of of 8,000 12,000 $1,672,000 $ 2,508,000 240,000.00 240,000 240,000

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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