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Exercise 21-3(Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on...

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Accounting

Exercise 21-3(Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 10,000 units) folllows.
Fixed Budget
Sales (10,000 units \times $211 per unit)2,110,000
Costs
Direct materials 230,000
Direct labor 420,000
Indirect materials 270,000
Supervisor salary 30,000
Sales commissions 70,000
Shipping 150,000
Administrative salaries 80,000
DepreciationOffice equipment 50,000
Insurance 20,000
Office rent 30,000
Income 760,000
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.Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.
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