Question

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget $2,130,000 $240,000 430,000 270,000 40,000 980,000 1,150,000 Sales (10,000 units) 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 90,000 150,000 100,000 340,000 90,000 60,000 30,000 40,000 220,000 $ 590,000 Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.)

Answer 1

Flexible Budget Flexible Budget Variable amount Total Fixed Per unit cost 213.00 8,000 units 10000 units 12000 Units 1704000 2130000 2556000 Sales Varaible costs Direct Material Direct labour Production Supplies Sales Commission Packaging 24.00 43.001 27.00 9.00 15.00 192000 344000 216000 720001 1200001 240000 430000 270000 90000 150000 288000 516000 324000 108000 180000 118.00 95.00 944000 760000 1180000 950000 1416000 1140000 Total Variable Costs Contribution Margin Fixed Cost Plant manager salary Adverisement administrative salaries Depreciation Insurance Office rent 40000 1000001 90000 60000 30000 400001 40000 100000 90000 60000 30000 40000 40000 1000001 90000 60000 30000 40000 400001 1000000 90000 60000 30000 40000 360000 Total Fixed cost Income From Operations 360000 400000 360000 590000 360000 780000