Exercise 8-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following.

	Fixed Budget
Sales (12,000 units)						$	2,604,000
Cost of goods sold
Direct materials		$	300,000
Direct labor			516,000
Production supplies			324,000
Plant manager salary			100,000				1,240,000
Gross profit							1,364,000
Selling expenses
Sales commissions			96,000
Packaging			168,000
Advertising			100,000				364,000
Administrative expenses
Administrative salaries			150,000
Depreciationoffice equip.			120,000
Insurance			90,000
Office rent			100,000				460,000
Income from operations						$	540,000

Complete the following flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.)

TEMPO COMPANY
Flexible Budgets
For Quarter Ended March 31, 2017
	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	10,000 units	12,000 units	14,000 units
Variable costs:
	0.00		0	0	0
Fixed costs:
		0	0	0	0