Question
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units $219 per unit) 2,628,000 Costs Direct materials 276,000 Direct
Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
| Fixed Budget | |
| Sales (12,000 units $219 per unit) | 2,628,000 |
|---|---|
| Costs | |
| Direct materials | 276,000 |
| Direct labor | 516,000 |
| Indirect materials | 324,000 |
| Supervisor salary | 76,000 |
| Sales commissions | 84,000 |
| Shipping | 180,000 |
| Administrative salaries | 126,000 |
| DepreciationOffice equipment | 96,000 |
| Insurance | 66,000 |
| Office rent | 76,000 |
| Income | 808,000 |
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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Data Analytics Using Excel Microsoft 365 With Accounting And Finance Datasets Version 3.0
Authors: Joseph Manzo
1st Edition
145333758X, 9781453337585
