Question

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 $2,472,000 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 $3ее, еeе 516,000 324, еее 100, 00е 1,240,000 1,232,e00 108,e0e 180,e00 100,00е 388,000 150,eee 120,000 90, е0е Insurance Office rent 1e0,eee 460, еее $ 384,e0e Income from operations Complete the following flexible budgets for sales volumes of 10,000, 12,00O, and 14,000 units. (Round cost per unit to 2 decimal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget at ------ Flexible Budget------ Variable Amount per Unit Total Fixed Cost 14,000 10,000 units 12,000 units units Variable costs: 0.00 0 0 Fixed costs 0

Answer 1

Flexible Budget Flexible Budget Variable amount Total Fixed Per unit cost 206.00 10,000 units 2060000 12000 units 14000 Units 2472000 2884000 25.00 43.00 27.00 9.00 15.00 250000 430000 270000 90000 150000 300000 516000 324000 108000 180000 350000 602000 378000 126000 210000 Sales Varaible costs Direct Material Direct labour Production Supplies Sales Commission Packaging Total Variable Costs Contribution Margin Fixed Cost Plant manager salary Adverisement administrative salaries Depreciation Insurance Office rent 119.00 87.00 1190000 870000 1428000 1044000 1666000 1218000 100000 100000 150000 120000 90000 100000 100000 100000 150000 120000 90000 100000 100000 100000 150000 120000 90000 100000 100000 100000 150000 120000 90000 100000 660000 Total Fixed cost Income From Operations 660000 210000 660000 384000 660000 558000