Exercise 8-2 Preparation of flexible budgets LO P1

Tempo Companys fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2015 reveals the following.

	Fixed Budget
Sales (16,000 units)						$	3,504,000
Cost of goods sold
Direct materials		$	400,000
Direct labor			688,000
Production supplies			432,000
Plant manager salary			200,000				1,720,000
Gross profit							1,784,000
Selling expenses
Sales commissions			128,000
Packaging			224,000
Advertising			100,000				452,000
Administrative expenses
Administrative salaries			250,000
Depreciationoffice equip.			220,000
Insurance			190,000
Office rent			200,000				860,000
Income from operations						$	472,000

Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round cost per unit to 2 decimal places.)