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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. 2,436,000 Fixed Budget Sales (12,000 units $203 per unit) Costs Direct materials Direct labor
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. 2,436,000 Fixed Budget Sales (12,000 units $203 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income 288,000 528,000 324,000 88,000 96,000 180,000 138,000 108,000 78,000 88,000 520,000 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. Compute total variable cost per unit. Total variable cost per unit Compute total fixed costs. Total fixed costs Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of 10,000 of 14,000 per Unit Variable costs 0.00 0 0 Fixed costs $ 0 $ 0 $ 0
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