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Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units $218 per unit) 3,488,000 Costs Direct materials 384,000 Direct
Tempo Company's fixed budget (based on sales of 16,000 units) folllows.
| Fixed Budget | |
|---|---|
| Sales (16,000 units $218 per unit) | 3,488,000 |
| Costs | |
| Direct materials | 384,000 |
| Direct labor | 672,000 |
| Indirect materials | 432,000 |
| Supervisor salary | 184,000 |
| Sales commissions | 128,000 |
| Shipping | 240,000 |
| Administrative salaries | 234,000 |
| DepreciationOffice equipment | 204,000 |
| Insurance | 174,000 |
| Office rent | 184,000 |
| Income | 652,000 |
- Compute total variable cost per unit.
- Compute total fixed costs.
- Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
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HR Self Audits A Strategy For Continuous Improvement
Authors: Wynette Harewood, Marilyn Silverman
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