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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Direct labor Sales (12,000 units $203 per unit) Costs Direct materials
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Direct labor Sales (12,000 units $203 per unit) Costs Direct materials Indirect materials 2,436,000 288,000 516,000 324,000 Supervisor salary 88,000 Sales commissions 108,000 Shipping 180,000 Administrative salaries 138,000 Depreciation-Office equipment 108,000 Insurance 78,000 Office rent 88,000 Income 520,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
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