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Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (18,000
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget | ||||||||
Sales (18,000 units) | $ | 3,654,000 | ||||||
Cost of goods sold | ||||||||
Direct materials | $ | 432,000 | ||||||
Direct labor | 774,000 | |||||||
Production supplies | 504,000 | |||||||
Plant manager salary | 232,000 | 1,942,000 | ||||||
Gross profit | 1,712,000 | |||||||
Selling expenses | ||||||||
Sales commissions | 126,000 | |||||||
Packaging | 288,000 | |||||||
Advertising | 100,000 | 514,000 | ||||||
Administrative expenses | ||||||||
Administrative salaries | 282,000 | |||||||
Depreciationoffice equip. | 252,000 | |||||||
Insurance | 222,000 | |||||||
Office rent | 232,000 | 988,000 | ||||||
Income from operations | $ | 210,000 | ||||||
Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)
Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ------Flexible Budget------ ------Flexible Budget at ------ Variable Total Fixed 16,000 20,000 Amount per 18,000 units Cost units units Unit Variable costs: 0.00 0 0 0 Fixed costs: 0 0 0 0Step by Step Solution
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