Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units...
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Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $220 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance office rent Income 3,960,000 450,000 756,000 486,000 250,000 162,000 288,000 300,000 270,000 240,000 250,000 508,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. TEMPO COMPANY Variable costs Fixed costs Flexible Budget Variable Amount Total Fixed per Unit Cost < Required; 0.00 $ Flexible Budget for: Units Sales Unit Sales of of 16,000 20,000 0 $ Required 3 0 0 $ 0 Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000 units x $220 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance office rent Income 3,960,000 450,000 756,000 486,000 250,000 162,000 288,000 300,000 270,000 240,000 250,000 508,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. TEMPO COMPANY Variable costs Fixed costs Flexible Budget Variable Amount Total Fixed per Unit Cost < Required; 0.00 $ Flexible Budget for: Units Sales Unit Sales of of 16,000 20,000 0 $ Required 3 0 0 $ 0
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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