Complete the following flexible budgets for sales volumes of

Complete the following flexible budgets for sales volumes of 10,000. 12.000, and 14,000 units. (Round cost per unlt to 2 declmal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 -Flexible Budget ble Budget at Variable Amount per Unit Total Fixed Cost 14,000 units 10,000 units 12,000 units 216.00 $2.160,000S 2,592,000 $3,024,000 Variable costs: Direct materials Direct labor Production supplies Sales commissions Packaging 24.00 43.00 27.00 8.00 16.00 240,000 430,000 270,000 80,000 180,000 288,000 338,000 516,000 602,000 378,000 112,000 192,000224,000 324,000 98,000 otal variable costs 118.00 1.180,000 1418,0001652,000 margin 118.00 980,0001,178,000 1,372,000 Fixed costs: Plant manager salary Advertising Administrative salaries Depreciation Office equip Office rent Insurance 88,000 100,000 138,000 108,000 88,000 78,000 88,000 100,000 138,000 108,000 88,000 78,000 88,000 100,000 138,000 108,000 88,000 78,000 88,000 100,000 138,000 108,000 88,000 78,000 otal fioxed costs 600,000 800,000 800,000 800,000 ncome from operations $ 458,000 S 854,000 $ 850,000

Solution

TEMPO COMPANY Flexible Budgets For Quarter Ended Mar 31, 2017 Flexible Budget Flexible Budget at Variable Amount per Unit Total Fixed Costs 10,000 Units 12,000 Units 14,000 Units Sales                  216.00    2,160,000.00    2,592,000.00    3,024,000.00 Variable Costs: Direct Material                    24.00        240,000.00        288,000.00        336,000.00 Direct Labor                    43.00        430,000.00        516,000.00        602,000.00 Production Supplies                    27.00        270,000.00        324,000.00        378,000.00 Sales Commissions                      8.00          80,000.00          96,000.00        112,000.00 Packaging                    16.00        160,000.00        192,000.00        224,000.00 Total Variable Costs                  118.00    1,180,000.00    1,416,000.00    1,652,000.00 Contribution Margin                    98.00        980,000.00    1,176,000.00    1,372,000.00 Fixed Costs: Plant Manager Salary           88,000.00          88,000.00          88,000.00          88,000.00 Advertising         100,000.00        100,000.00        100,000.00        100,000.00 Administrative Salaries         138,000.00        138,000.00        138,000.00        138,000.00 Depreciation - Office Equipment         108,000.00        108,000.00        108,000.00        108,000.00 Insurance           78,000.00          78,000.00          78,000.00          78,000.00 Office Rent           88,000.00          88,000.00          88,000.00          88,000.00 Total Fixed Costs         600,000.00        600,000.00        600,000.00        600,000.00 Income From Operations        380,000.00        576,000.00        772,000.00