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Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $209 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance office rent Income 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 126,000 136,000 548,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $209 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance office rent Income 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 126,000 136,000 548,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget x $209 per unit) Sales (14,000 units Costs Direct materials Direct labor Indirect materials Supervisor salary. Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income Required 1 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Compute total variable cost per unit. Total variable cost per unit Required 2 Required 31 Required 1 Required 21 Variable costs Fixed costs 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 + 126,000 136,000 548,000 Required 3 < Required 1 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Required 2 > Flexible Budget Variable Amount Total Fixed Cost per Unit < Required 2 Flexible Budget for: Units Sales Unit Sales of 16,000 of 12,000 Required 3 >
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget x $209 per unit) Sales (14,000 units Costs Direct materials Direct labor Indirect materials Supervisor salary. Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income Required 1 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Compute total variable cost per unit. Total variable cost per unit Required 2 Required 31 Required 1 Required 21 Variable costs Fixed costs 2,926,000 336,000 588,000 378,000 136,000 112,000 224,000 186,000 156,000 + 126,000 136,000 548,000 Required 3 < Required 1 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Required 2 > Flexible Budget Variable Amount Total Fixed Cost per Unit < Required 2 Flexible Budget for: Units Sales Unit Sales of 16,000 of 12,000 Required 3 >
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