Exercise 8-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 3,312, eee Fixed Budget Sales (16,000 units * $207 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income 384,000 704,000 448,000 184,800 112,000 240,000 234,000 284,800 174,000 184,900 444,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit $ 900 field Required 2 > Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 3,312, eee Fixed Budget Sales (16,800 units - $207 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income 384,800 784, eee 448, Bee 184, Bee 112,800 240, 809 234,000 284,000 174,000 184, Bee 444, eee 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14.000 units and 18,000 units. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. TEMPO COMPANY Flexible Budget Variable Amount per Total Fixed Cost Unit ws 207.00 Flexible Budget for: Units Unit Sales of Sales of 14,000 18,000 s 2,898,000 3,720,000 Sales Variable costs Direct materials Direct labor Sales commissions Shipping 24.00 44.00 7.00 15.00 230,000 616,000 98,000 210.000 432.000 792,000 120,000 270,000 soolo Contribution margin Fooed costs Ols 90.00 117.00 X 1.200.000 1.620,000 1,638,000 32.100.000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. TEMPO COMPANY Flexible Budget Variable Total Fixed Amount per Cost Unit Flexible Budget for. Units Unit Sales of Sales of 14,000 18,000 S 2,808,000 3.728,000 Sales S 207.00 Variable costs Direct materials Direct labor Sales commissions Shipping 24.00 44.00 7.00 15.00 336,000 616,000 98,000 210,000 432.000 792,000 120,000 270.000 Contribution margin Foxed costs 90.00 117.00 1.200.000 1.638,000 1.620,000 2,100,000 $ Total foed costs $ 0 Income $ 658,000 s 11,120.000
