Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000...
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Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units $207 per unit) 3,312,000 Costs Direct materials 400,000 Direct labor 688,000 Indirect materials 432,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 256,000 Administrative salaries 250,000 DepreciationOffice equipment 220,000 Insurance 190,000 Office rent 200,000 Income 364,000 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.
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