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Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000 units x $400 per unit) Budgeted units Budgeted selling
Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000 units x $400 per unit) Budgeted units Budgeted selling 7,000 price per unit $400 $2,800,000 Costs Direct materials 280,000 B Direct labor 490,000 Indirect materials 175,000 0 Supervisor salary 65,000 1 Sales commissions 140,000 2 Shipping 154,000 3 Administrative salaries 210,000 4 Depreciation-Office equipment 35,000 5 Insurance 20,000 6 Office rent 36,000 7 Income $1,195,000
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