Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $201 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 2,412,000 288,000 504,000 324,000 Sales Variable costs 88,000 108,000 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. Fixed costs 168,000 138,000 108,000 78,000 88,000 520,000 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Flexible Budget Total Fixed Cost Variable Amount per Unit < Required 2 0.00 $ Flexible Budget for: Unit Units Sales of Sales of 10,000 14,000 0 $ 0 0 $ Required 3 > 0 0
Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000 units × $201 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 2,412,000 288,000 504,000 324,000 Sales Variable costs 88,000 108,000 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. Fixed costs 168,000 138,000 108,000 78,000 88,000 520,000 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. TEMPO COMPANY Flexible Budget Total Fixed Cost Variable Amount per Unit < Required 2 0.00 $ Flexible Budget for: Unit Units Sales of Sales of 10,000 14,000 0 $ 0 0 $ Required 3 > 0 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
Related questions
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
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 12,000 units) folllows.
Fixed Budget
Sales (12,000 units × $201
per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation-Office
equipment
Insurance
Office rent
Income
2,412,000
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.
288,000
504,000
324,000
88,000
108,000
168,000
138,000
108,000
78,000
88,000
520,000
Complete this question by entering your answers in the tabs below.
Sales
Variable costs
Required Required Required
1
2
3
Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.
Fixed costs
TEMPO COMPANY
Flexible Budget
Variable
Amount per
Unit
< Required 2
0.00
Total
Fixed
Cost
$
Flexible Budget
for:
Unit
Units
Sales of Sales of
10,000 14,000
0 $
0
0 $
Required 3 >
0
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning