Question
Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $203 per unit) 2,842,000 Costs Direct materials 336,000 Direct
Tempo Company's fixed budget (based on sales of 14,000 units) folllows.
| Fixed Budget | |
| Sales (14,000 units $203 per unit) | 2,842,000 |
|---|---|
| Costs | |
| Direct materials | 336,000 |
| Direct labor | 588,000 |
| Indirect materials | 378,000 |
| Supervisor salary | 136,000 |
| Sales commissions | 112,000 |
| Shipping | 224,000 |
| Administrative salaries | 186,000 |
| DepreciationOffice equipment | 156,000 |
| Insurance | 126,000 |
| Office rent | 136,000 |
| Income | 464,000 |
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.
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Managerial Accounting An Introduction To Concepts Methods And Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson
7th Edition
0030259630, 978-0030259630
