Question
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units $217 per unit) 2,604,000 Costs Direct materials 300,000 Direct
Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
| Fixed Budget | |
| Sales (12,000 units $217 per unit) | 2,604,000 |
|---|---|
| Costs | |
| Direct materials | 300,000 |
| Direct labor | 504,000 |
| Indirect materials | 324,000 |
| Supervisor salary | 100,000 |
| Sales commissions | 96,000 |
| Shipping | 180,000 |
| Administrative salaries | 150,000 |
| DepreciationOffice equipment | 120,000 |
| Insurance | 90,000 |
| Office rent | 100,000 |
| Income | 640,000 |
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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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
