Question
empo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units $211 per unit) 3,376,000 Costs Direct materials 384,000 Direct
empo Company's fixed budget (based on sales of 16,000 units) folllows.
| Fixed Budget | |
| Sales (16,000 units $211 per unit) | 3,376,000 |
|---|---|
| Costs | |
| Direct materials | 384,000 |
| Direct labor | 704,000 |
| Indirect materials | 416,000 |
| Supervisor salary | 184,000 |
| Sales commissions | 112,000 |
| Shipping | 224,000 |
| Administrative salaries | 234,000 |
| DepreciationOffice equipment | 204,000 |
| Insurance | 174,000 |
| Office rent | 184,000 |
| Income | 556,000 |
1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
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Audit Guide Government Auditing Standards And Single Audits
Authors: AICPA
1st Edition
1945498447, 978-1945498442
