Tempo Company's fixed budget (based on sales of 16,000 units) follows. Fixed Budget Sales (16,000 units...
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Tempo Company's fixed budget (based on sales of 16,000 units) follows. Fixed Budget Sales (16,000 units * $220 per unit) 3,520,000 Costs Direct materials 368,000 704,000 432,000 168,000 Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment 144,000 240,000 218,000 188,000 158,000 168,000 Insurance office rent Income 732,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. Tempo Company's fixed budget (based on sales of 16,000 units) follows. Fixed Budget Sales (16,000 units * $220 per unit) 3,520,000 Costs Direct materials 368,000 704,000 432,000 168,000 Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment 144,000 240,000 218,000 188,000 158,000 168,000 Insurance office rent Income 732,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
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Answer rating: 100% (QA)
1 Total variable cost per unit Total variable costno of units 3680007040004320001440002400001600 188... 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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