Exercise 8-2 Preparation of flexible budgets LO P1

Tempo Companys fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2015 reveals the following.

Fixed Budget Sales (14,000 units) $ 3,066,000 Cost of goods sold Direct materials $ 350,000 Direct labor 602,000 Production supplies 392,000 Plant manager salary 150,000 1,494,000 Gross profit 1,572,000 Selling expenses Sales commissions 112,000 Packaging 224,000 Advertising 100,000 436,000 Administrative expenses Administrative salaries 200,000 Depreciationoffice equip. 170,000 Insurance 140,000 Office rent 150,000 660,000 Income from operations $ 476,000

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.)