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Exercise 21-2 Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.
| Fixed Budget |
| Sales (18,000 units) | | | | | | $ | 3,798,000 | |
| Cost of goods sold | | | | | | | | |
| Direct materials | | $ | 432,000 | | | | | |
| Direct labor | | | 774,000 | | | | | |
| Production supplies | | | 504,000 | | | | | |
| Plant manager salary | | | 232,000 | | | | 1,942,000 | |
| Gross profit | | | | | | | 1,856,000 | |
| Selling expenses | | | | | | | | |
| Sales commissions | | | 144,000 | | | | | |
| Packaging | | | 288,000 | | | | | |
| Advertising | | | 100,000 | | | | 532,000 | |
| Administrative expenses | | | | | | | | |
| Administrative salaries | | | 282,000 | | | | | |
| Depreciationoffice equip. | | | 252,000 | | | | | |
| Insurance | | | 222,000 | | | | | |
| Office rent | | | 232,000 | | | | 988,000 | |
| Income from operations | | | | | | $ | 336,000 |
Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)
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| | | TEMPO COMPANY | | Flexible Budgets | | For Quarter Ended March 31, 2017 | | | ------Flexible Budget------ | ------Flexible Budget at ------ | | | Variable Amount per Unit | Total Fixed Cost | 16,000 units | 18,000 units | 20,000 units | | | | | | | | | Variable costs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0.00 | | 0 | 0 | 0 | | | | | | | | | Fixed costs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | 0 | 0 | 0 | | | | | | | |
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