chapter 21 ex 21 2 496541
Aug 29, 2021 | Uncategorized
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Tempo Company’s fixed budget for the first quarter of calendar year 2013 reveals the following.
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| Sales (14,000 units) |
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$ |
2,842,000 |
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| Cost of goods sold |
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| Direct materials |
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$ |
328,160 |
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| Direct labor |
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590,520 |
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| Production supplies |
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391,160 |
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| Plant manager salary |
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128,160 |
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1,438,000 |
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| Gross profit |
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1,404,000 |
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| Selling expenses |
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| Sales commissions |
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100,100 |
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| Packaging |
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220,080 |
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| Advertising |
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100,000 |
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420,180 |
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| Administrative expenses |
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| Administrative salaries |
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178,160 |
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| Depreciation office equip. |
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148,160 |
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| Insurance |
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118,160 |
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| Office rent |
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128,160 |
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572,640 |
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| Income from operations |
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$ |
411,180 |
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Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
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