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 × $211 per unit) | $ | 2,954,000 | ||||||
| Cost of goods sold | ||||||||
| Direct materials | $ | 350,000 | ||||||
| Direct labor | 588,000 | |||||||
| Production supplies | 392,000 | |||||||
| Plant manager salary | 150,000 | 1,480,000 | ||||||
| Gross profit | 1,474,000 | |||||||
| Selling expenses | ||||||||
| Sales commissions | 112,000 | |||||||
| Packaging | 196,000 | |||||||
| Advertising | 100,000 | 408,000 | ||||||
| Administrative expenses | ||||||||
| Administrative salaries | 200,000 | |||||||
| Depreciation—office equip. | 170,000 | |||||||
| Insurance | 140,000 | |||||||
| Office rent | 150,000 | 660,000 | ||||||
| Income from operations | $ | 406,000 | ||||||
(1) Compute the total variable cost per
unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales
volume of 12,000 units.
(4) Compute the income from operations for sales
volume of 16,000 units.
-------
(1) total variable cost per unit.???
(2) total fixed costs.???
(3) income from operations for sales volume of 12,000 units.???
(4) income from operations for sales volume of 16,000 units.???
Homework Answers
| TEMPO COMPANY | |||||
| Flexible Budgets | |||||
| For the 1st Quarter | |||||
| Flexible Budgets | Flexible Budgets | ||||
| Variable amount per unit | Total Fixed cost | 12,000 units | 14,000 units | 16,000 units | |
| Sales | $211.00 | $25,32,000.00 | $29,54,000.00 | $33,76,000.00 | |
| Variable Costs: | |||||
| Direct materials | $25.00 | $3,00,000.00 | 350000 | $4,00,000.00 | |
| Direct labor | $42.00 | $5,04,000.00 | 588000 | $6,72,000.00 | |
| Production supplies | $28.00 | $3,36,000.00 | 392000 | $4,48,000.00 | |
| Sales commissions | $8.00 | $96,000.00 | 112000 | $1,28,000.00 | |
| Packaging | $14.00 | $1,68,000.00 | 196000 | $2,24,000.00 | |
| Total Variable costs | $117.00 | $14,04,000.00 | 1638000 | $18,72,000.00 | |
| Contribution margin | $94.00 | $11,28,000.00 | 1316000 | $15,04,000.00 | |
| Fixed Costs: | |||||
| Plant manager salary | $1,50,000 | $1,50,000 | $1,50,000 | $1,50,000 | |
| Advertising | $1,00,000 | $1,00,000 | $1,00,000 | $1,00,000 | |
| Administrative salaries | $2,00,000 | $2,00,000 | $2,00,000 | $2,00,000 | |
| Depreciation expnses-Office equip | $1,70,000 | $1,70,000 | $1,70,000 | $1,70,000 | |
| Insurance | $1,40,000 | $1,40,000 | $1,40,000 | $1,40,000 | |
| Office Rent | $1,50,000 | $1,50,000 | $1,50,000 | $1,50,000 | |
| Total Fixed Costs | $9,10,000 | $9,10,000 | $9,10,000 | $9,10,000 | |
| Income from operations | $2,18,000 | $4,06,000 | $5,94,000 | ||
Add Answer to:
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...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,926,000 $350,000 588,000 378,000 150,000 1,466,000 1,460,000 Sales (14,000 units x $209 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 112,000 196,000 100,000 408,000 200,000 170,000 140,000 150,000 660,000 $ 392,000 (1) Compute the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $ 2,996,000 $350,000 602,000 392,000 150,000 1,494,000 1,502,000 Sales (14,000 units X $214 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 126,000 210,000 100,000 436,000 200,000 170,000 140,000 150,000 660,000 406,000 $ (1) Compute...
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 $2,996,000 $322,000 602,000 392,000 122,000 1,438,000 1,558,000 Sales (14,000 units * $214 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 112,000 210,000 100,000 422,000 172,000 142,000 112,000 122,000 548,000 588,000 6 (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 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 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 × $213 per unit) $ 2,982,000 Cost of goods sold Direct materials $ 336,000 Direct labor 602,000 Production supplies 378,000 Plant manager salary 136,000 1,452,000 Gross profit 1,530,000 Selling expenses Sales commissions 98,000 Packaging 210,000 Advertising 100,000 408,000 Administrative expenses Administrative salaries 186,000 Depreciation—office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 518,000 (1)...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar...
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 Sales (14,000 units) Cost of goods sold $2,912,000 Direct materials Direct labor Production supplies Plant manager salary $322,000 602,000 392,000 122,000 1,438,000 Gross profit Selling expenses 1,474,000 Sales commissions Packaging Advertising 112,000 224,000 100.000 436,000 Administrative expenses Administrative salaries Depreciation-office equ Insurance Office rent 172,000 142,000 112,000 122,000 ip. 548,000 490,000 Income from operations Complete the following...
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 × $218 per unit) $ 3,052,000 Cost of goods sold Direct materials $ 336,000 Direct labor 602,000 Production supplies 378,000 Plant manager salary 136,000 1,452,000 Gross profit 1,600,000 Selling expenses Sales commissions 112,000 Packaging 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 186,000 Depreciation—office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 574,000 1)...
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $ 2,544,000 $300,000 528,000 312,000 100,000 1,240,000 1,304,000 Sales (12,000 units X $212 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 96,000 180,000 100,000 376,000 150,000 120,000 90,000 100,000 460,000 468,000 $ (1)...
Exercise 08-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000...
Exercise 08-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,926,000 $350,000 602,000 378,000 150,000 1,480,000 1,446,000 Sales (14,000 units X $209 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 126,000 210,000 100,000 436,000 200,000 170,000 140,000...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,926,000 $350,000 588,000 378,000 150,000 1,466,000 1,460,000 Sales (14,000 units x $209 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 112,000 196,000 100,000 408,000 200,000 170,000 140,000 150,000 660,000 $ 392,000 (1) Compute the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $ 2,996,000 $350,000 602,000 392,000 150,000 1,494,000 1,502,000 Sales (14,000 units X $214 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 126,000 210,000 100,000 436,000 200,000 170,000 140,000 150,000 660,000 406,000 $ (1) Compute...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,996,000 $322,000 602,000 392,000 122,000 1,438,000 1,558,000 Sales (14,000 units * $214 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 112,000 210,000 100,000 422,000 172,000 142,000 112,000 122,000 548,000 588,000 6 (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 14,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget Sales (14,000 units) Cost of goods sold $2,912,000 Direct materials Direct labor Production supplies Plant manager salary $322,000 602,000 392,000 122,000 1,438,000 Gross profit Selling expenses 1,474,000 Sales commissions Packaging Advertising 112,000 224,000 100.000 436,000 Administrative expenses Administrative salaries Depreciation-office equ Insurance Office rent 172,000 142,000 112,000 122,000 ip. 548,000 490,000 Income from operations Complete the following...
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $ 2,544,000 $300,000 528,000 312,000 100,000 1,240,000 1,304,000 Sales (12,000 units X $212 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 96,000 180,000 100,000 376,000 150,000 120,000 90,000 100,000 460,000 468,000 $ (1)...
Exercise 08-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,926,000 $350,000 602,000 378,000 150,000 1,480,000 1,446,000 Sales (14,000 units X $209 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 126,000 210,000 100,000 436,000 200,000 170,000 140,000...
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