Question

In: Accounting

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (14,000 units × $220 per unit) $ 3,080,000
Cost of goods sold
Direct materials $ 350,000
Direct labor 616,000
Production supplies 378,000
Plant manager salary 150,000 1,494,000
Gross profit 1,586,000
Selling expenses
Sales commissions 112,000
Packaging 210,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 200,000
Depreciation—office equip. 170,000
Insurance 140,000
Office rent 150,000 660,000
Income from operations $ 504,000


(1) Compute the total variable cost per unit.

Compute the total variable cost per unit.
Variable cost per unit

(2) Compute the total fixed costs.

Compute the total fixed costs.
Total fixed costs

(3) Compute the income from operations for sales volume of 12,000 units.
Income from operations at sales of 12,000 units

(4) Compute the income from operations for sales volume of 16,000 units.

Income from operations at sales of 16,000 units

Solutions

Expert Solution

ekkarill92 answered 9 months ago
Next > < Previous

Related Solutions

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget Sales (14,000 units × $219 per unit) $ 3,066,000 Cost of goods sold Direct materials $ 350,000 Direct labor 588,000 Production supplies 392,000 Plant manager salary 150,000 1,480,000 Gross profit 1,586,000 Selling expenses Sales commissions 98,000 Packaging 224,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 200,000 Depreciation—office equip. 170,000 Insurance 140,000 Office rent 150,000 660,000 Income from operations $ 504,000 (1)...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget Sales (14,000 units × $212 per unit) $ 2,968,000 Cost of goods sold Direct materials $ 350,000 Direct labor 602,000 Production supplies 392,000 Plant manager salary 150,000 1,494,000 Gross profit 1,474,000 Selling expenses Sales commissions 112,000 Packaging 196,000 Advertising 100,000 408,000 Administrative expenses Administrative salaries 200,000 Depreciation—office equip. 170,000 Insurance 140,000 Office rent 150,000 660,000 Income from operations $ 406,000 (1)...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget Sales (14,000 units × $207 per unit) $ 2,898,000 Cost of goods sold Direct materials $ 322,000 Direct labor 602,000 Production supplies 364,000 Plant manager salary 122,000 1,410,000 Gross profit 1,488,000 Selling expenses Sales commissions 98,000 Packaging 196,000 Advertising 100,000 394,000 Administrative expenses Administrative salaries 172,000 Depreciation—office equip. 142,000 Insurance 112,000 Office rent 122,000 548,000 Income from operations $ 546,000 (1)...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget Sales (18,000 units × $208 per unit) $ 3,744,000 Cost of goods sold Direct materials $ 414,000 Direct labor 756,000 Production supplies 468,000 Plant manager salary 214,000 1,852,000 Gross profit 1,892,000 Selling expenses Sales commissions 126,000 Packaging 270,000 Advertising 100,000 496,000 Administrative expenses Administrative salaries 264,000 Depreciation—office equip. 234,000 Insurance 204,000 Office rent 214,000 916,000 Income from operations $ 480,000 (1)...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget Sales (10,000 units × $201 per unit) $ 2,010,000 Cost of goods sold Direct materials $ 230,000 Direct labor 430,000 Production supplies 260,000 Plant manager salary 30,000 950,000 Gross profit 1,060,000 Selling expenses Sales commissions 90,000 Packaging 140,000 Advertising 100,000 330,000 Administrative expenses Administrative salaries 80,000 Depreciation—office equip. 50,000 Insurance 20,000 Office rent 30,000 180,000 Income from operations $ 550,000 (1)...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $209 per unit) $ 3,344,000 Cost of goods sold Direct materials $ 400,000 Direct labor 688,000 Production supplies 448,000 Plant manager salary 200,000 1,736,000 Gross profit 1,608,000 Selling expenses Sales commissions 128,000 Packaging 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 280,000 (1)...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget Sales (10,000 units × $204 per unit) $ 2,040,000 Cost of goods sold Direct materials $ 230,000 Direct labor 430,000 Production supplies 270,000 Plant manager salary 30,000 960,000 Gross profit 1,080,000 Selling expenses Sales commissions 80,000 Packaging 140,000 Advertising 100,000 320,000 Administrative expenses Administrative salaries 80,000 Depreciation—office equip. 50,000 Insurance 20,000 Office rent 30,000 180,000 Income from operations $ 580,000 (1)...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $216 per unit) $ 3,456,000 Cost of goods sold Direct materials $ 400,000 Direct labor 672,000 Production supplies 432,000 Plant manager salary 200,000 1,704,000 Gross profit 1,752,000 Selling expenses Sales commissions 128,000 Packaging 256,000 Advertising 100,000 484,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 408,000 (1)...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget Sales (10,000 units × $212 per unit) $ 2,120,000 Cost of goods sold Direct materials $ 240,000 Direct labor 440,000 Production supplies 280,000 Plant manager salary 40,000 1,000,000 Gross profit 1,120,000 Selling expenses Sales commissions 80,000 Packaging 140,000 Advertising 100,000 320,000 Administrative expenses Administrative salaries 90,000 Depreciation—office equip. 60,000 Insurance 30,000 Office rent 40,000 220,000 Income from operations $ 580,000 (1)...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. (1)Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 16,000 units. (4) Compute the income from operations for sales volume of 20,000 units. Fixed Budget Sales (18,000 units × $214 per unit) $ 3,852,000 Cost of goods sold Direct materials $ 450,000 Direct labor 774,000 Production supplies 504,000 Plant...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT