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Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (7,000 units) $2,800,000 Cost of goods sold Direct materials $280,000 Direct labor 490,000 Production supplies 175,000 Plant manager salary 65,000 1,010,000 Gross profit 1,790,000 Selling expenses Sales commissions 140,000 Packaging 154,000 Advertising 125,000 419,000 Administrative expenses Administrative salaries 85,000 Depreciation-office equip. 35,000 Insurance 20,000 Office rent 36,000 176,000 Income from operations $1,195,000 Complete the following flexible budgets for sales volumes of 6,000, 7,000, and 8,000 units. Answer is not complete. TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ...Flexible Budget- ...Flexible Budget at - Variable Amount Total Fixed 6,000 units 7,000 units Cost 8,000 units per Unit Variable costs: Direct materials Direct labor Production supplies Sales commissions Packaging 40.00 70.00 25.00 O 240,000 420,000 150,000 120,000 132,000 280,000 490,000 175,000 140,000 154,000 320,000 560,000 200,000 160,000 176,000 0 20.00 OO 22.00 Complete the following flexible budgets for sales volumes of 6,000, 7,000, and 8,000 units. Answer is not complete. TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ---Flexible Budget ------ ...Flexible Budget at - Variable Total Fixed Amount 6,000 units 7,000 units 8,000 units Cost per Unit Variable costs: 40.00 70.00 Direct materials Direct labor Production supplies Sales commissions Packaging Advertising Total variable costs 25.00 20.00 22.00 17.86 % 194.86 240,000 420,000 150,000 120,000 132,000 107,143 1,169,143 280,000 490,000 175,000 140,000 154,000 125,000 1,364,000 320,000 560,000 200,000 160,000 176,000 142,857 1,558,857 X000 65,000 85,000 Fixed costs: Plant manager salary Administrative salaries Depreciation--office equip Insurance Office rent 35,000 65,000 85,000 35,000 20,000 36,000 65,000 85,000 35,000 20,000 36,000 65,000 85,000 35,000 20,000 36,000 20,000 36,000 Total fixed costs 241,000 241,000 241,000 241,000