Exerclse 8-3 (Algo) Preparing flexlble budgets LO P1Tempo Company's fixed budget (based on sales of 16,000 units) folllows.Fixed Budget3,312, 800Sales (16, 689 units x $207 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-OFfice equipmentInsuranceOffice rent384, 000704, 000448, 000184, B00112, e00240, 000234,000204,000174, 0e0184,000Income444, 0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Compute total variable cost per unit.Total variable cost per unit900Required 2 > Tempo Company's fixed budget (based on sales of 16,000 units) follows.Fixed BudgetSales (16, ee0 units x $207 per unit)CostsDirect materialsDirect laborIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-OFfice equipmentInsuranceOffice rent3, 312, e00384, 000704, 00e448, eee184, 000112, 800240, 800234, 000204, 000174, 000184, вее444, 8eeIncome1. Compute total variable cost per unit.2 Compute total fixed costs.3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.O Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.TEMPO COMPANYFlexible BudgetFlexible Budget for:VariableAmount perUnit207.00 OUnitsTotal FixedCostSales of14,000UnitSales of18,000Sales2,808.0003.720,000Variable costsDirect materials24.00 O330,000432,000Direct labor44.00 O7.00 O616,000792,000Sales commissions98,000210,000 O120,000270,000 OShipping15.00 O90.001,200.0001.620,000Contribution margin1,638,000 2,108,000 8117.00Fooed costs

Budget refers to the estimation of the incomes and expenses for a specified future period as per the…

Answered: 1. Compute total variable cost per…

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1PB

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Exerclse 8-3 (Algo) Preparing flexlble budgets LO P1
Tempo Company's fixed budget (based on sales of 16,000 units) folllows.
Fixed Budget
3,312, 800
Sales (16, 689 units x $207 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-OFfice equipment
Insurance
Office rent
384, 000
704, 000
448, 000
184, B00
112, e00
240, 000
234,000
204,000
174, 0e0
184,000
Income
444, 000
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Compute total variable cost per unit.
Total variable cost per unit
900
Required 2 >

Tempo Company's fixed budget (based on sales of 16,000 units) follows.
Fixed Budget
Sales (16, ee0 units x $207 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-OFfice equipment
Insurance
Office rent
3, 312, e00
384, 000
704, 00e
448, eee
184, 000
112, 800
240, 800
234, 000
204, 000
174, 000
184, вее
444, 8ee
Income
1. Compute total variable cost per unit.
2 Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
O Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.
TEMPO COMPANY
Flexible Budget
Flexible Budget for:
Variable
Amount per
Unit
207.00 O
Units
Total Fixed
Cost
Sales of
14,000
Unit
Sales of
18,000
Sales
2,808.000
3.720,000
Variable costs
Direct materials
24.00 O
330,000
432,000
Direct labor
44.00 O
7.00 O
616,000
792,000
Sales commissions
98,000
210,000 O
120,000
270,000 O
Shipping
15.00 O
90.00
1,200.000
1.620,000
Contribution margin
1,638,000 2,108,000 8
117.00
Fooed costs

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