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Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed
Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units $202 per unit)
2,424,000
Costs
Direct materials
288,000
Direct labor
504,000
Indirect materials
312,000
Supervisor salary
88,000
Sales commissions
96,000
Shipping
180,000
Administrative salaries
138,000
DepreciationOffice equipment
108,000
Insurance
78,000
Office rent
88,000
Income
544,000
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