Question
Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $207 per unit) 2,898,000 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 $207 per unit) | 2,898,000 |
| Costs | |
| Direct materials | 336,000 |
| Direct labor | 602,000 |
| Indirect materials | 364,000 |
| Supervisor salary | 136,000 |
| Sales commissions | 98,000 |
| Shipping | 210,000 |
| Administrative salaries | 186,000 |
| DepreciationOffice equipment | 156,000 |
| Insurance | 126,000 |
| Office rent | 136,000 |
| Income | 548,000 |
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. Compute total variable cost per unit.
| Part 3 |
| Part 2 | Total Fixed Cost | |
| Part 1 |
|
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
5th Edition
0324233108, 978-0324233100
