Question

Ch 08 Ex 8-3 G Saved Help Save 1 Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units x $215 per unit) Cost of goods sold Direct materials $3,440,000 10 points $368,000 Direct labor 688,000 432,000 168,000 Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 еВok Sales commissions 128,000 256,000 Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip 484,000 100,000 Hint 218,000 188,000 158,000 168,000 Insurance 732,000 Office rent Ask $ 568,000 Income from operations Print (1) Compute the total variable cost per unit. (2) Compute the total fixed costs (3) Compute the income from operations for sales volume of 14,000 units (4) Compute the income from operations for sales volume of 18,000 units. References Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Required 1 Compute the total variable cost per unit. Variable cost per unit

Answer 1

Answer: Total variable cost per unit Total Fixed Cost Income from operation at 14000 units Income from operation at 18000 units 117 1000000 372000 764000

TEMPO COMPANY Flexible Budget Report For year Ended December 31, 2017 Flexible Budget Variable Amount per unit Total Fixed Costs 215.00 Flexible Budget at Units sales of 14000 Unit sales of 18000 3010000 3870000 Sales Variable costs: Direct materials Direct labor Production supplies Sales Commissions Packaging 23.00 43.00 27.00 322000 602000 378000 112000 224000 414000 774000 486000 144000 288000 8.00 16.00 117.00 98.00 1638000 1372000 2106000 1764000 Variable costs per unit Contribution margin Fixed costs: Plant management salary Advertising Administrative Salaries Depreciation office equipment Insurance Office rent 168000 100000 218000 188000 158000 168000 168000 100000 218000 188000 158000 168000 168000 100000 218000 188000 1580001 168000 1000000 Total Fixed costs Income from operations 1000000 372000 1000000 764000