Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units x $209 per unit) Costs Direct materials Direct labor Indirect materials 2,090,000 240,000 430,000 280,000 Supervisor salary 40,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 90,000 Depreciation-office equipment 60,000 Insurance 30,000 Office rent 40,000 Income 650,000 ces 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. 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 8,000 units and 12,000 units. Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost $ $ 2,090,000.00 2,090,000.00 Flexible Budget for: Units Sales Unit Sales of of 8,000 12,000 $1,672,000 $ 2,508,000 240,000.00 240,000 240,000
Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units x $209 per unit) Costs Direct materials Direct labor Indirect materials 2,090,000 240,000 430,000 280,000 Supervisor salary 40,000 Sales commissions 80,000 Shipping 150,000 Administrative salaries 90,000 Depreciation-office equipment 60,000 Insurance 30,000 Office rent 40,000 Income 650,000 ces 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. 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 8,000 units and 12,000 units. Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost $ $ 2,090,000.00 2,090,000.00 Flexible Budget for: Units Sales Unit Sales of of 8,000 12,000 $1,672,000 $ 2,508,000 240,000.00 240,000 240,000
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...
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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
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 10,000 units) folllows.
Fixed Budget
Sales (10,000 units x $209 per unit)
Costs
Direct materials
Direct labor
Indirect materials
2,090,000
240,000
430,000
280,000
Supervisor salary
40,000
Sales commissions
80,000
Shipping
150,000
Administrative salaries
90,000
Depreciation-office equipment
60,000
Insurance
30,000
Office rent
40,000
Income
650,000
ces
1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
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 8,000 units and 12,000 units.
Sales
Variable costs
Direct materials
Direct labor
Indirect materials
Sales commissions
Shipping
TEMPO COMPANY
Flexible Budget
Variable Amount
per Unit
Total Fixed
Cost
$
$ 2,090,000.00
2,090,000.00
Flexible Budget for:
Units Sales Unit Sales of
of 8,000 12,000
$1,672,000
$ 2,508,000
240,000.00
240,000
240,000
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