Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.

Sales (16,000 units) $3,424,000 Cost of goods sold

Direct materials $379,040 Direct labor 679,360 Production supplies 429,760 Plant manager salary 179,040

1,667,200

Gross profit 1,756,800

Selling expenses

Sales commissions 124,480 Packaging 238,080 Advertising 100,000

462,560

Administrative expenses

Administrative salaries 229,040 Depreciation