Question
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed
Exercise 21-3 Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following.
Fixed BudgetSales (12,000 units $210 per unit)$2,520,000Cost of goods soldDirect materials$288,000Direct labor528,000Production supplies312,000Plant manager salary88,0001,216,000Gross profit1,304,000Selling expensesSales commissions96,000Packaging180,000Advertising100,000376,000Administrative expensesAdministrative salaries138,000Depreciationoffice equip.108,000Insurance78,000Office rent88,000412,000Income from operations$516,000
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