Question
Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units $216 per unit) 3,888,000 Costs Direct materials 414,000 Direct
Tempo Company's fixed budget (based on sales of 18,000 units) folllows.
| Fixed Budget | |
| Sales (18,000 units $216 per unit) | 3,888,000 |
| Costs |
|
| Direct materials | 414,000 |
| Direct labor | 792,000 |
| Indirect materials | 486,000 |
| Supervisor salary | 214,000 |
| Sales commissions | 144,000 |
| Shipping | 270,000 |
| Administrative salaries | 264,000 |
| DepreciationOffice equipment | 234,000 |
| Insurance | 204,000 |
| Office rent | 214,000 |
| Income | 652,000 |
1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
978-1259536359
