Question

Pls help me find 1-4

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 $2,814,000 $322,000 602,000 392,000 122,000 1,438,000 1,376,000 Sales (14,000 units * $201 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 112,000 210,000 100,000 422,000 112,000 142,000 112,000 122,000 $ 548,000 406,000 (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. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4

Answer 1

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Solution: Format and naming convention is not available, can be slightly different: Answers are highlighted in yellow: Variable cost: Direct Materials Direct Labor Production Supplies Sales Commission Packaging Total Variable cost per unit (322000/14000) (602000/14000) (392000/14000) (112000/14000) (210000/14000) 117 Plant manager salary Advertising Admin Salaries Depreciation office equipment Insurance Office rent Total Fixed cost 122000 100000 172000 142000 112000 122000 770000 2)

3)&4) Flexible Budget for 12000 2412000 14000 2814000 16000 3216000 Flexible Budget Variable Cost Total Particulars per unit Fixed Cost Sales (@ $201) Variable overhead cost: Direct Materials Direct Labor Production Supplies Sales Commission Packaging Total Variable overhead cost $ 117 Fixed Overhead costs: Plant manager salary 122000 Advertising 100000 Admin Salaries 172000 Depreciation office equipment 142000 Insurance 112000 Office rent 122000 Total Fixed overhead cost 770000 Total Cost (Variable + Fixed) Income from Opertation (Sales - Total cost) 276000 516000 336000 96000 180000 1404000 322000 602000 392000 112000 210000 1638000 368000 (rate*Qty) 688000 448000 128000 240000 1872000 122000 100000 172000 142000 112000 122000 770000 2174000 238000 122000 100000 172000 142000 112000 122000 122000 100000 172000 142000 112000 122000 770000 2642000 574000 770000 2408000 406000