Question
Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units $212 per unit) 2,120,000 Costs Direct materials 240,000 Direct
Tempo Company's fixed budget (based on sales of 10,000 units) folllows.
| Fixed Budget | |
| Sales (10,000 units $212 per unit) | 2,120,000 |
|---|---|
| Costs | |
| Direct materials | 240,000 |
| Direct labor | 440,000 |
| Indirect materials | 270,000 |
| Supervisor salary | 40,000 |
| Sales commissions | 90,000 |
| Shipping | 160,000 |
| Administrative salaries | 90,000 |
| DepreciationOffice equipment | 60,000 |
| Insurance | 30,000 |
| Office rent | 40,000 |
| Income | 660,000 |
1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
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Energy Audits And Improvements For Commercial Buildings
Authors: Ian M. Shapiro
1st Edition
1119084164, 978-1119084167
