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Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following

Sales (18,000 units)						$	3,852,000
Cost of goods sold
Direct materials		$	441,000
Direct labor			760,500
Production supplies			486,720
Plant manager salary			241,000				1,929,220
Gross profit							1,922,780
Selling expenses
Sales commissions			145,080
Packaging			281,160
Advertising			100,000				526,240
Administrative expenses
Administrative salaries			291,000
Depreciationoffice equip.			261,000
Insurance			231,000
Office rent			241,000				1,024,000
Income from operations						$	372,540

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)

TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2013 Flexible Budget Flexible Budget at Variable Amount per Unit Total Fixed Cost 16000 units 18000 units 20000 units Sales Variable costs: Direct materials Direct labor Production supplies Sales commissions Packaging Fixed costs

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