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Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (14,000
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget | ||||||||
Sales (14,000 units) | $ | 3,024,000 | ||||||
Cost of goods sold | ||||||||
Direct materials | $ | 336,000 | ||||||
Direct labor | 588,000 | |||||||
Production supplies | 364,000 | |||||||
Plant manager salary | 136,000 | 1,424,000 | ||||||
Gross profit | 1,600,000 | |||||||
Selling expenses | ||||||||
Sales commissions | 98,000 | |||||||
Packaging | 224,000 | |||||||
Advertising | 100,000 | 422,000 | ||||||
Administrative expenses | ||||||||
Administrative salaries | 186,000 | |||||||
Depreciationoffice equip. | 156,000 | |||||||
Insurance | 126,000 | |||||||
Office rent | 136,000 | 604,000 | ||||||
Income from operations | $ | 574,000 | ||||||
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
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