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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following. Sales (12,000 units)
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following. Sales (12,000 units) Fixed Budget $2,616,000 Cost of goods sold Direct materials $288,000 Direct labor 516,000 Production supplies: 312,000 Plant manager salary 88,000 1,284,000 Gross profit 1,412,000 Selling expenses Sales commissions 108,000 Packaging 180,000 Advertising 100,000 388,000 Administrative expenses Administrative salaries 138,000 Depreciation-office equip. 108,000 Insurance 78,000 Office rent 88,000 Income from operations 412,000 $ 612,000 Complete the following flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.) Variable costs: Fixed costs: TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget- ------Flexible Budget at- Variable Amount per Total Fixed Cost 10,000 units 12,000 units 14,000 units Unit 0.00 0
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