Question

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget $2,963,600 $336,609 692, 378,000 136,000 1,452,eee 1,516,00 Sales (14,000 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 98,990 210,000 100,000 488, cee 186,000 156,000 126,000 136,000 684,699 504,000 $ Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 --...-Flexible Budget---... --...-Flexible Budget at -..... Variable Total Fixed 12,000 Amount per 14.000 units 16,000 units Cost units Unit Variable costs: 0.00 Fixed costs:

Answer 1

TEMPO COMPANY Fixed Budget Report For year Ended December 31, Flexible Budget Variable Amount per unit Total Fixed Costs Units sales of 12000 212.00 2544000 Flexible Budget at Units sales of 14000 Unit sales of 16000 2968000 3392000 Sales Variable costs: Direct materials Direct labor Production supplies Sales Commissions Packaging 24.00 43.00 27.00 7.00 15.00 288000 516000 324000 84000 180000 336000 602000 378000 98000 210000 384000 688000 432000 112000 240000 116.00 96.00 1392000 1152000 1624000 1344000 1856000 1536000 Total Variable costs Contribution margin Fixed costs: Plant management salary Advertising Administrative Salaries Depreciation office equipment Insurance Office rent 136000 100000 186000 156000 126000 136000 136000 100000 186000 156000 126000 136000 136000 1000001 186000 156000 126000 136000 136000 100000 186000 156000 126000 136000 840000 Total Fixed costs Income from operations 840000 312000 840000 504000 840000 696000