Question

tempo company’s fixed budget based of 12000 units

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following! Fixed Budget $2.460.000 $275,000 516,000 324,000 76,000 1, 192,000 1.268,000 Sales (12,000 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 84,000 180,000 100,000 354.000 126,000 96,000 66,000 76,000 364, 000 540.000 $ Complete the following flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.)

Answer 1

TEMPO COMPANY Fixed Budget Report For year Ended December 31, Flexible Budget Variable Amount per unit Total Fixed Costs Units sales of 10000 205.00 2050000 Flexible Budget at Units sales of 12000 Unit sales of 14000 2460000 2870000 Sales Variable costs: Direct materials Direct labor Production supplies Sales Commissions Packaging 23.00 43.00 27.00 7.00 15.00 230000 430000 270000 70000 150000 276000 516000 324000 84000 180000 322000 602000 378000 98000 210000 115.00 90.00 1150000 900000 1380000 1080000 16100001 1260000 Total Variable costs Contribution margin Fixed costs: Plant management salary Advertising Administrative Salaries Depreciation office equipment Insurance Office rent 76000 100000 126000 96000 66000 76000 76000 100000 126000 96000 66000 76000 76000 100000 126000 96000 66000 76000 76000 100000 126000 960001 66000 76000 540000 Total Fixed costs Income from operations 540000 360000 540000 540000 540000 720000