Tempo Company's fixed budget (based on sales of 14,000 units) follows. Fixed Budget Sales (14,000 units × $200 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance Office rent Income 2,800,000 336,000 588,000 378,000 136,000 112,000 210,000 186,000 156,000 126,000 136,000 436,000 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) follows. Fixed Budget Sales (14,000 units × $200 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation Office equipment Insurance Office rent Income 2,800,000 336,000 588,000 378,000 136,000 112,000 210,000 186,000 156,000 126,000 136,000 436,000 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.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...

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