Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget...
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Accounting
Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units $213 per unit)
2,556,000
Costs
Direct materials
276,000
Direct labor
504,000
Indirect materials
336,000
Supervisor salary
76,000
Sales commissions
96,000
Shipping
180,000
Administrative salaries
126,000
DepreciationOffice equipment
96,000
Insurance
66,000
Office rent
76,000
Income
724,000
1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
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