Question

In: Accounting

Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 16,000...

Exercise 21-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following.

Fixed Budget
Sales (16,000 units) $ 3,232,000
Cost of goods sold
Direct materials $ 384,000
Direct labor 688,000
Production supplies 432,000
Plant manager salary 184,000 1,688,000
Gross profit 1,544,000
Selling expenses
Sales commissions 144,000
Packaging 240,000
Advertising 100,000 484,000
Administrative expenses
Administrative salaries 234,000
Depreciation—office equip. 204,000
Insurance 174,000
Office rent 184,000 796,000
Income from operations $ 264,000


Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round cost per unit to 2 decimal places.)

TEMPO COMPANYFlexible BudgetsFor Quarter Ended March 31, 2017------Flexible Budget------------Flexible Budget at ------Variable Amount per UnitTotal Fixed Cost14,000 units16,000 units18,000 unitsVariable costs:Fixed costs:

Solutions

Expert Solution

TEMPO COMPANY
Flexible Budgets
For Quarter Ended March 31, 2017
------Flexible Budget------ ------Flexible Budget at ------
Variable Amount
per Unit
Total Fixed Cost 14,000 units 16,000 units 18,000 units
Sales 202 2,828,000 3,232,000 3,636,000
Variable costs:
Direct materials 24 336,000 384,000 432,000
Direct labor 43 602,000 688,000 774,000
Production supplies 27 378,000 432,000 486,000
Sales commissions 9 126,000 144,000 162,000
Packaging 15 210,000 240,000 270,000
Total variable costs 118 1652000 1888000 2124000
Contribution margin 84 1,176,000 1,344,000 1,512,000
Fixed costs:
Plant manager salary 184,000 184,000 184,000 184,000
Advertising 100,000 100,000 100,000 100,000
Administrative salaries 234,000 234,000 234,000 234,000
Depreciation—office equip. 204,000 204,000 204,000 204,000
Insurance 174,000 174,000 174,000 174,000
Office rent 184,000 184,000 184,000 184,000
Total fixed costs 1,080,000 1,080,000 1,080,000 1,080,000
Income from operations 96,000 264,000 432,000

Related Solutions

Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000...
Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (14,000 units) $ 2,856,000 Cost of goods sold Direct materials $ 350,000 Direct labor 616,000 Production supplies 364,000 Plant manager salary 150,000 1,480,000 Gross profit 1,376,000 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...
Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000...
Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (10,000 units) $ 2,150,000 Cost of goods sold Direct materials $ 250,000 Direct labor 420,000 Production supplies 260,000 Plant manager salary 50,000 980,000 Gross profit 1,170,000 Selling expenses Sales commissions 70,000 Packaging 150,000 Advertising 100,000 320,000 Administrative expenses Administrative salaries 100,000 Depreciation—office equip. 70,000 Insurance 40,000 Office rent 50,000...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $213 per unit) $ 2,556,000 Cost of goods sold Direct materials $ 300,000 Direct labor 528,000 Production supplies 324,000 Plant manager salary 100,000 1,252,000 Gross profit 1,304,000 Selling expenses Sales commissions 96,000 Packaging 192,000 Advertising 100,000 388,000 Administrative expenses Administrative salaries 150,000 Depreciation—office equip. 120,000 Insurance 90,000 Office rent 100,000...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000...
Exercise 21-3 Preparing flexible budgets LO P1 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 × $211 per unit) $ 2,110,000 Cost of goods sold Direct materials $ 230,000 Direct labor 440,000 Production supplies 270,000 Plant manager salary 30,000 970,000 Gross profit 1,140,000 Selling expenses Sales commissions 70,000 Packaging 160,000 Advertising 100,000 330,000 Administrative expenses Administrative salaries 80,000 Depreciation—office equip. 50,000 Insurance 20,000 Office rent 30,000...
Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000...
Exercise 21-3 Preparing flexible budgets LO P1 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 × $203 per unit) $ 2,030,000 Cost of goods sold Direct materials $ 240,000 Direct labor 420,000 Production supplies 260,000 Plant manager salary 40,000 960,000 Gross profit 1,070,000 Selling expenses Sales commissions 90,000 Packaging 150,000 Advertising 100,000 340,000 Administrative expenses Administrative salaries 90,000 Depreciation—office equip. 60,000 Insurance 30,000 Office rent 40,000...
Exercise 8-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000...
Exercise 8-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (12,000 units) $ 2,604,000 Cost of goods sold Direct materials $ 300,000 Direct labor 516,000 Production supplies 324,000 Plant manager salary 100,000 1,240,000 Gross profit 1,364,000 Selling expenses Sales commissions 96,000 Packaging 168,000 Advertising 100,000 364,000 Administrative expenses Administrative salaries 150,000 Depreciation—office equip. 120,000 Insurance 90,000 Office rent 100,000...
Exercise 23-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000...
Exercise 23-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $212 per unit) $ 2,544,000 Cost of goods sold Direct materials $ 300,000 Direct labor 528,000 Production supplies 336,000 Plant manager salary 100,000 1,264,000 Gross profit 1,280,000 Selling expenses Sales commissions 96,000 Packaging 168,000 Advertising 100,000 364,000 Administrative expenses Administrative salaries 150,000 Depreciation—office equip. 120,000 Insurance 90,000 Office rent 100,000...
Exercise 08-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000...
Exercise 08-3 Preparing flexible budgets LO P1 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 × $213 per unit) $ 2,130,000 Cost of goods sold Direct materials $ 250,000 Direct labor 420,000 Production supplies 280,000 Plant manager salary 50,000 1,000,000 Gross profit 1,130,000 Selling expenses Sales commissions 90,000 Packaging 150,000 Advertising 100,000 340,000 Administrative expenses Administrative salaries 100,000 Depreciation—office equip. 70,000 Insurance 40,000 Office rent 50,000...
Exercise 08-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000...
Exercise 08-3 Preparing flexible budgets LO P1 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 × $219 per unit) $ 2,190,000 Cost of goods sold Direct materials $ 240,000 Direct labor 440,000 Production supplies 270,000 Plant manager salary 40,000 990,000 Gross profit 1,200,000 Selling expenses Sales commissions 80,000 Packaging 160,000 Advertising 100,000 340,000 Administrative expenses Administrative salaries 90,000 Depreciation—office equip. 60,000 Insurance 30,000 Office rent 40,000...
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)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT