Question

Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget $ 2,960,800 $240,000 430, eee 270,000 40, eee 980, eee 1,880,898 Sales (10,800 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 90,000 150. eee 180, eee 340, eee 99, eee 60, eee 30, eee 4e, eee 220, 80e 520,000 $ Complete the following flexible budgets for sales volumes of 8,000. 10,000, and 12,000 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 Amount per 8,000 units 10,000 units 12,000 Unit units Cost Variable costs: Fixed costs:

Answer 1

TEMPO COMPANY Fixed Budget Report For year Ended December 31, 2017 Flexible Budget Variable Amount per unit) Total Fixed Costs Units sales of 8000 206.00 1648000 Flexible Budget at Units sales of 10000 Unit sales of 12000 2060000 2472000 Sales Variable costs: Direct materials Direct labor Production supplies Sales Commissions Packaging 24.00 43.00 27.00 9.00 15.00 192000 344000 216000 72000 120000 240000 430000 270000 90000 150000 288000 516000 324000 108000 180000 118.00 88.00 944000 704000 1180000 880000 1416000 1056000 Variable costs per unit Contribution margin Fixed costs: Plant management salary Advertising Administrative Salaries Depreciation office equipment Insurance Office rent 40000 100000 90000 60000 30000 40000 40000 100000 90000 60000 30000 40000 40000 100000 90000 60000 30000 40000 40000 100000 90000 60000 30000 40000 360000 Total Fixed costs Income from operations 360000 344000 360000 520000 360000 696000