Exercise 23-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget $ 2,060,000 $240,000 430,000 270,000 40,000 980,000 1,080,000 Sales (10,000 units) 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 90,000 160,000 100,000 350,000 90,000 60,000 30,000 40,000 220,000 510,000 $ Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.) Flexible Budgets For Quarter Ended March 31, 2017 ------Flexible Budget------ ------Flexible Budget at ------ Variable Amount per Total Fixed 8,000 units 10,000 units 12,000 Cost Unit units $ 206.00 2,472,000 Sales 1,648,000 $2,060,000 Variable costs: Direct materials Direct labor Production supplies Sales commissions Packaging 24.00 43.00 27.00 9.00 16.00 192,000 344,000 216,000 72,000 128,000 240,000 430,000 270,000 90,000 160,000 288,000 516,000 324,000 108,000 192,000 119.00 952,000 1,190,000 1,428,000 Total variable costs Contribution margin Fixed costs: Plant manager salary Depreciation - Office equip. Advertising Administrative salaries 40,000 60,000 100,000 90,000 30,000 40,000 40,000 60,000 100,000 90,000 30,000 40,000 40,000 60,000 100,000 90,000 30,000 40,000 Insurance Office rent 0 360,000 360,000 360,000 Total fixed costs Income from operations