Exercise 21-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following.

	Fixed Budget
Sales (16,000 units)						$	3,312,000
Cost of goods sold
Direct materials		$	384,000
Direct labor			688,000
Production supplies			432,000
Plant manager salary			184,000				1,688,000
Gross profit							1,624,000
Selling expenses
Sales commissions			144,000
Packaging			256,000
Advertising			100,000				500,000
Administrative expenses
Administrative salaries			234,000
Depreciationoffice equip.			204,000
Insurance			174,000
Office rent			184,000				796,000
Income from operations						$	328,000

Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round cost per unit to 2 decimal places.)