Chapter 23

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget $2,070,000 $230,000 430,000 270,000 30,000 960,000 1,110,000 Sales (10,000 units) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance office rent Income from operations 90,000 160,000 100,000 350,000 80,000 50,000 20,000 30,000 180,000 $ 580,000 Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.) Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.) cBook TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 --Flexible Budget -Flexible Budget at - Variable Amount per Total Fixed 8,000 units Cost Unit 10,000 units 12,000 units Variable costs: Fixed costs TITUTIILIT IIIIIIIIII TILITI TTTT