Question
Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $216 per unit) 3,024,000 Costs Direct materials 350,000 Direct
Tempo Company's fixed budget (based on sales of 14,000 units) folllows.
| Fixed Budget | |
| Sales (14,000 units $216 per unit) | 3,024,000 |
|---|---|
| Costs | |
| Direct materials | 350,000 |
| Direct labor | 588,000 |
| Indirect materials | 364,000 |
| Supervisor salary | 150,000 |
| Sales commissions | 126,000 |
| Shipping | 196,000 |
| Administrative salaries | 200,000 |
| DepreciationOffice equipment | 170,000 |
| Insurance | 140,000 |
| Office rent | 150,000 |
| Income | 590,000 |
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Computer Accounting With QuickBooks Online
Authors: Donna Kay
3rd Edition
1264127278, 9781264127276
