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Tempo Company's fixed budget (based on sales of 18,000 units) follows. Fixed Budget Sales (18,000 units $210 per unit) 3,780,000 Costs Direct materials 450,000 Direct
Tempo Company's fixed budget (based on sales of 18,000 units) follows.
| Fixed Budget | |
|---|---|
| Sales (18,000 units $210 per unit) | 3,780,000 |
| Costs | |
| Direct materials | 450,000 |
| Direct labor | 774,000 |
| Indirect materials | 486,000 |
| Supervisor salary | 250,000 |
| Sales commissions | 144,000 |
| Shipping | 288,000 |
| Administrative salaries | 300,000 |
| DepreciationOffice equipment | 270,000 |
| Insurance | 240,000 |
| Office rent | 250,000 |
| Income | 328,000 |
- Compute total variable cost per unit.
- Compute total fixed costs.
- Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
