Exercise 8-2 Preparing Flexible Budgets LO P1

Exerclse 8-2 Preparing flexlble budgets LO P1 the following sales of 12,000 units) for the first quarter of calendar year 2017 reveals Tempo Company's fixed budget (based on Fixed Budget $2,544,000 Sales (12,000 units) Cost of goods sold Direct materials $276,000 528,000 324,000 76,000 Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions 1,204,000 1,340,000 96,000 180,000 100,000 Packaging Advertising Administrative expenses 376,000 126,000 96,000 66,000 76,000 Administrative salaries Depreciation--office equip. Insurance Office rent 364,000 Income from operations 600,000 Complete the following flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unlt to 2 declmal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget Flexible Budget at ------ Variable Amount per Unit Total Fixed 14,000 units 10,000 units 12,000 units Cost Variable costs Fixed costs