Question
Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units $212 per unit) 3,816,000 Costs Direct materials 432,000 Direct
Tempo Company's fixed budget (based on sales of 18,000 units) folllows.
| Fixed Budget | |
|---|---|
| Sales (18,000 units $212 per unit) | 3,816,000 |
| Costs | |
| Direct materials | 432,000 |
| Direct labor | 774,000 |
| Indirect materials | 486,000 |
| Supervisor salary | 232,000 |
| Sales commissions | 144,000 |
| Shipping | 270,000 |
| Administrative salaries | 282,000 |
| DepreciationOffice equipment | 252,000 |
| Insurance | 222,000 |
| Office rent | 232,000 |
| Income | 490,000 |
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.
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 Step by Step Solution
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Auditing a risk based approach to conducting a quality audit
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
9th edition
9781133939160, 1133939155, 1133939163, 978-1133939153
