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empo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units $214 per unit) 3,852,000 Costs Direct materials 450,000 Direct
empo Company's fixed budget (based on sales of 18,000 units) folllows.
| Fixed Budget | |
|---|---|
| Sales (18,000 units $214 per unit) | 3,852,000 |
| Costs | |
| Direct materials | 450,000 |
| Direct labor | 792,000 |
| Indirect materials | 468,000 |
| Supervisor salary | 250,000 |
| Sales commissions | 126,000 |
| Shipping | 252,000 |
| Administrative salaries | 300,000 |
| DepreciationOffice equipment | 270,000 |
| Insurance | 240,000 |
| Office rent | 250,000 |
| Income | 454,000 |
- Compute total variable cost per unit.
- Compute total fixed costs.
- Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
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