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Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units x $208 per unit) Costs Direct materials 2,912,000 350,000
Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units x $208 per unit) Costs Direct materials 2,912,000 350,000 Direct labor 602,000 Indirect materials 378,000 Supervisor salary 150,000 Sales commissions 112,000 Shipping 210,000 Administrative salaries 200,000 Depreciation-Office equipment 170,000 Insurance 140,000 Office rent 150,000 Income 450,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 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 Prey 1 of 6 Next Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs < Required 1 Required 3 > Variable costs Fixed costs TEMPO COMPANY Flexible Budget Variable Amount per Unit Flexible Budget for: Total Fixed Cost Units Sales of 12,000 Unit Sales of 16,000
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