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Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017
Exercise 21-2 Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget | ||||||||
Sales (14,000 units) | $ | 2,828,000 | ||||||
Cost of goods sold | ||||||||
Direct materials | $ | 336,000 | ||||||
Direct labor | 602,000 | |||||||
Production supplies | 378,000 | |||||||
Plant manager salary | 136,000 | 1,452,000 | ||||||
Gross profit | 1,376,000 | |||||||
Selling expenses | ||||||||
Sales commissions | 98,000 | |||||||
Packaging | 196,000 | |||||||
Advertising | 100,000 | 394,000 | ||||||
Administrative expenses | ||||||||
Administrative salaries | 186,000 | |||||||
Depreciationoffice equip. | 156,000 | |||||||
Insurance | 126,000 | |||||||
Office rent | 136,000 | 604,000 | ||||||
Income from operations | $ | 378,000 | ||||||
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ------Flexible Budget------ ------Flexible Budget at ------ Variable Total Fixed 16,000 Amount per 12.000 units 14,000 units units Cost Unit Variable costs: Fixed costsStep by Step Solution
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