Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the...
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Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the following. Compute (1) the total variable cost per unit, (2) total fixed costs, (3) income from operations for sales volume of 6,000 units, and (4) income from operations for sales volume of 8,000 units. Fixed Budget Sales (7,000 units x $400 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation Office equip. Insurance Office rent Income from operations $280,000 490,000 175,000 65,000 140,000 154,000 125,000 85,000 35,000 20,000 36,000 $2,800,000 1,010,000 1,790,000 419,000 176,000 $1,195,000 Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the following. Compute (1) the total variable cost per unit, (2) total fixed costs, (3) income from operations for sales volume of 6,000 units, and (4) income from operations for sales volume of 8,000 units. Fixed Budget Sales (7,000 units x $400 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation Office equip. Insurance Office rent Income from operations $280,000 490,000 175,000 65,000 140,000 154,000 125,000 85,000 35,000 20,000 36,000 $2,800,000 1,010,000 1,790,000 419,000 176,000 $1,195,000
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Ans 1 Ans 2 Ans 3 Ans 4 Variable cost per unit Particular variable cost Units sold Direct materials ... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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