1. Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following

	Fixed Budget
Sales (16,000 units)						$	3,472,000
Cost of goods sold
Direct materials		$	400,000
Direct labor			688,000
Production supplies			416,000
Plant manager salary			200,000				1,704,000
Gross profit							1,768,000
Selling expenses
Sales commissions			128,000
Packaging			240,000
Advertising			100,000				468,000
Administrative expenses
Administrative salaries			250,000
Depreciationoffice equip.			220,000
Insurance			190,000
Office rent			200,000				860,000
Income from operations						$	440,000

Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round cost per unit to 2 decimal places.)

2. Solitaire Companys fixed budget performance report for June follows. The $303,750 budgeted expenses include $267,300 variable expenses and $36,450 fixed expenses. Actual expenses include $44,950 fixed expenses.

	Fixed Budget			Actual Results			Variances
Sales (in units)		8,100			10,500
Sales (in dollars)	$	405,000		$	525,000		$	120,000	F
Total expenses		303,750			367,500			63,750	U
Income from operations	$	101,250		$	157,500		$	56,250	F

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.

TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget Flexible Budget at Variable Amount per Unit Total Fixed Cost 18,000 units 14,000 units 16,000 units Variable costs: 0.00 Fixed costs: SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual ResultsVariances Fav./Unf Contribution margin