Exercise 21-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.

Fixed Budget
Sales (18,000 units)						$	3,798,000
Cost of goods sold
Direct materials		$	432,000
Direct labor			774,000
Production supplies			504,000
Plant manager salary			232,000				1,942,000
Gross profit							1,856,000
Selling expenses
Sales commissions			144,000
Packaging			288,000
Advertising			100,000				532,000
Administrative expenses
Administrative salaries			282,000
Depreciationoffice equip.			252,000
Insurance			222,000
Office rent			232,000				988,000
Income from operations						$	336,000

Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 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 Amount per Unit	Total Fixed Cost	16,000 units	18,000 units	20,000 units
Variable costs:
	0.00		0	0	0
Fixed costs:
		0	0	0	0