Homework Answers
Requirement 1
Total variable cost per unit = $117 per unit
Requirement 2
Total fixed cost = $1,320,000
Requirement 3
Income at 16000 units sales = $232,000
Requirement 4
Income at 20000 units sales = $ 620,000
Working
| TEMPO COMPANY | |||||
| Flexible Budget | |||||
| Flexible budget | Flexible budget at | ||||
| variable Amount per Unit | Total Fixed cost | 16000 Units | 20000 Units | ||
| Sales | $ 214.00 | $ 3,424,000.00 | $ 4,280,000.00 | ||
| Variable costs | |||||
| Direct material | $ 24.00 | $ 384,000.00 | $ 480,000.00 | ||
| Direct Labor | $ 43.00 | $ 688,000.00 | $ 860,000.00 | ||
| Production Supplies | $ 28.00 | $ 448,000.00 | $ 560,000.00 | ||
| Sales commission | $ 7.00 | $ 112,000.00 | $ 140,000.00 | ||
| Packaging | $ 15.00 | $ 240,000.00 | $ 300,000.00 | ||
| Total Variable Costs | $ 117.00 | $ 1,872,000.00 | $ 2,340,000.00 | ||
| Contribution margin | $ 97.00 | $ 1,552,000.00 | $ 1,940,000.00 | ||
| Fixed Costs | |||||
| Plant manager's salary | $ 232,000.00 | $ 232,000.00 | $ 232,000.00 | ||
| Advertising | $ 100,000.00 | $ 100,000.00 | $ 100,000.00 | ||
| Administrative salaries | $ 282,000.00 | $ 282,000.00 | $ 282,000.00 | ||
| Depreciation-Office equipment | $ 252,000.00 | $ 252,000.00 | $ 252,000.00 | ||
| Insurance | $ 222,000.00 | $ 222,000.00 | $ 222,000.00 | ||
| Office rent | $ 232,000.00 | $ 232,000.00 | $ 232,000.00 | ||
| Total Fixed Costs | $ 1,320,000.00 | $ 1,320,000.00 | $ 1,320,000.00 | ||
| Income From operations | $ 232,000.00 | $ 620,000.00 | |||
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Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,798,000 $ 432,000 756.000 468,000 232,000 1,888,000 1,910,000 Sales (18,000 units $211 per unit) 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 144,000 270,000 100.000 514,000 282,000 252,000 222,000 232,000 988.000 408.000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,798,000 $432,000 774,000 486,000 232,000 1,924,000 1,874,000 Sales (18,000 units * $211 per unit) 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 144,000 270,000 100,000 514,000 282,000 252,000 222,000 232,000 988,000 372,000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,708,000 $450,000 756,000 486,000 250,000 1,942,000 1,766,000 Sales (18,000 units x $206 per unit) 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 126,000 252,000 100,000 478,000 300,000 270,000 240,000 250,000 1,060,000 228,000 $ (1) Compute...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget Sales (18,000 units × $206 per unit) $ 3,708,000 Cost of goods sold Direct materials $ 432,000 Direct labor 774,000 Production supplies 504,000 Plant manager salary 232,000 1,942,000 Gross profit 1,766,000 Selling expenses Sales commissions 126,000 Packaging 288,000 Advertising 100,000 514,000 Administrative expenses Administrative salaries 282,000 Depreciation—office equip. 252,000 Insurance 222,000 Office rent 232,000...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar...
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) Cost of goods sold $3,888,000 Direct materials Direct labor Production supplies Plant manager salary $432,000 774,000 486,000 232,000 1,924,000 Gross profit Selling expenses 1,964,000 Sales commissions Packaging Advertising 162,000 252,000 100.000 514,000 Administrative expenses Administrative salaries epreciation-office equip. Insurance Office rent 282,000 252,000 222,000 232,000 988,000 462,000 Income from operations Complete the following flexible...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget Sales (18,000 units × $204 per unit) $ 3,672,000 Cost of goods sold Direct materials $ 450,000 Direct labor 792,000 Production supplies 504,000 Plant manager salary 250,000 1,996,000 Gross profit 1,676,000 Selling expenses Sales commissions 126,000 Packaging 252,000 Advertising 100,000 478,000 Administrative expenses Administrative salaries 300,000 Depreciation—office equip. 270,000 Insurance 240,000 Office rent 250,000 1,060,000 Income from operations $ 138,000 (1)...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,296,000 $384,000 688,000 432,000 184,000 1,688,000 1,608,000 Sales (16,000 units x $206 per unit) 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 144,000 256,000 100,000 500,000 234,000 204,000 174,000 184,000 796,000 312,000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,814,000 Sales (14,000 units x $201 per unit) Cost of goods sold Direct materials $350,000 616,000 364,000 150,000 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 1,480,000 1,334,000 98,000 210,000 100,000 408,000 200,000 170,000 140,000 150,000 660,000 $ 266,000 Income from operations (1) Compute the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following Fixed Budget $2,050,e00 Sales (10,000 units x $205 per unit) Cost of goods sold Direct materials $240,000 Direct labor 440,000 Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent 260,000 40,000 980,000 1,070,000 80,000 150,000 100,000 330,000 90,000 60,000 30,000 40,000 220,000 $ 520,000 Income from operations (1) Compute the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget Sales (14,000 units × $205 per unit) $ 2,870,000 Cost of goods sold Direct materials $ 322,000 Direct labor 602,000 Production supplies 392,000 Plant manager salary 122,000 1,438,000 Gross profit 1,432,000 Selling expenses Sales commissions 112,000 Packaging 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 172,000 Depreciation—office equip. 142,000 Insurance 112,000 Office rent 122,000 548,000 Income from operations $ 462,000 (1)...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,798,000 $ 432,000 756.000 468,000 232,000 1,888,000 1,910,000 Sales (18,000 units $211 per unit) 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 144,000 270,000 100.000 514,000 282,000 252,000 222,000 232,000 988.000 408.000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,798,000 $432,000 774,000 486,000 232,000 1,924,000 1,874,000 Sales (18,000 units * $211 per unit) 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 144,000 270,000 100,000 514,000 282,000 252,000 222,000 232,000 988,000 372,000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget $3,708,000 $450,000 756,000 486,000 250,000 1,942,000 1,766,000 Sales (18,000 units x $206 per unit) 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 126,000 252,000 100,000 478,000 300,000 270,000 240,000 250,000 1,060,000 228,000 $ (1) Compute...
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) Cost of goods sold $3,888,000 Direct materials Direct labor Production supplies Plant manager salary $432,000 774,000 486,000 232,000 1,924,000 Gross profit Selling expenses 1,964,000 Sales commissions Packaging Advertising 162,000 252,000 100.000 514,000 Administrative expenses Administrative salaries epreciation-office equip. Insurance Office rent 282,000 252,000 222,000 232,000 988,000 462,000 Income from operations Complete the following flexible...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,296,000 $384,000 688,000 432,000 184,000 1,688,000 1,608,000 Sales (16,000 units x $206 per unit) 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 144,000 256,000 100,000 500,000 234,000 204,000 174,000 184,000 796,000 312,000 $ (1) Compute the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,814,000 Sales (14,000 units x $201 per unit) Cost of goods sold Direct materials $350,000 616,000 364,000 150,000 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 1,480,000 1,334,000 98,000 210,000 100,000 408,000 200,000 170,000 140,000 150,000 660,000 $ 266,000 Income from operations (1) Compute the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following Fixed Budget $2,050,e00 Sales (10,000 units x $205 per unit) Cost of goods sold Direct materials $240,000 Direct labor 440,000 Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent 260,000 40,000 980,000 1,070,000 80,000 150,000 100,000 330,000 90,000 60,000 30,000 40,000 220,000 $ 520,000 Income from operations (1) Compute the...
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