Question

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget Sales (14,000 units) Cost of goods sold $2,996,000 Direct materials $336,000 602,000 364,000 Direct labor Production supplies Plant manager salary Gross profit Selling expenses 1,438,000 136,000 1,558,000 98,000 196,000 Sales commissions Packaging Advertising Administrative expenses 394,000 100,000 Administrative salaries 186,000 156,000 Depreciation-office equip Insurance 126,000 136,000 Office rent 604,000 Income from operations 560,000 Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)

Answer 1

TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget Flexible Budget at Variable Amount Per Total Fixed 12000 Units 14000 Units 16000 Units Unit Costs $ 214 S 2,568,000S 2,996,000 S 3,424,000 $ 288,000 $ $ 516,000 $ $ 312,000 $ $ 84,000 $ $ 168,000 $ $ 1,368,000 $ S 1,200,000S 336,000 $ 384,000 602,000 $ 688,000 364,000 $ 416,000 98,000 $ 112,000 196,000 $ 224,000 1,596,000 $ 1,824,000 1,400,000 S 1,600,000 $ S 114 100 Sales Variable Costs Direct Materials Direct Labour Production Supplides Sales Commissions Pacaging Total Variable Costs Contribution Margin Fixed Costs Plant Manager Salary advertaising Administrative Salaries Depreciation - Office Equipment Insurance Office Rent Total Fixed Costs Income From Operations $ $ $ $ $ $ 136,000 100,000 186,000 156,000 126,000 136,000 $ $ $ $ $ $ $ S 136,000 $ 100,000 $ 186,000 $ 156,000 $ 126,000 $ 136,000 $ 840,000 $ 360,000 S 136,000 $ 100,000 $ 186,000 $ 156,000 $ 126,000 $ 136,000 $ 840,000 $ 560,000 S 136,000 100,000 186,000 156,000 126,000 136,000 840,000 760,000