Exercise 8-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.

	Fixed Budget
Sales (18,000 units)						$	3,744,000
Cost of goods sold
Direct materials		$	414,000
Direct labor			774,000
Production supplies			486,000
Plant manager salary			214,000				1,888,000
Gross profit							1,856,000
Selling expenses
Sales commissions			126,000
Packaging			252,000
Advertising			100,000				478,000
Administrative expenses
Administrative salaries			264,000
Depreciationoffice equip.			234,000
Insurance			204,000
Office rent			214,000				916,000
Income from operations						$	462,000

Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)