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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units x $217 per unit) Costs Direct materials Direct labor
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units x $217 per unit) Costs Direct materials Direct labor Indirect materials 2,604,000 288,000 516,000 312,000 Supervisor salary Sales commissions Shipping 88,000 84,000 180,000 Administrative salaries 138,000 Depreciation-office equipment 108,000 Insurance 78,000 Office rent 88,000 Income 724,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit Fixed Budget Sales (12,000 units x $217 per unit) 2,604,000 Costs Direct materials 288,000 Direct labor Indirect materials 516,000 312,000 Supervisor salary 88,000 Sales commissions 84,000 Shipping 180,000 Administrative salaries 138,000 Depreciation-office equipment 108,000 Insurance 78,000 office rent 88,000 Income 724,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Variable costs Fixed costs Flexible Budget Variable Amount Total Fixed per Unit Cost Flexible Budget for: Units Sales Unit Sales of of 10,000 14,000 0.00 0 0 $ 0 $ 0 $ 0
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