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Tempo Company's fixed budget (based on sales of 10,000 units) folllows.

Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed BudgetSales (10,000 units × $203 per unit) 2,030,000
CostsDirect materials230,000
Direct labor440,000
Indirect materials280,000
Supervisor salary30,000
Sales commissions80,000
Shipping150,000Administrative salaries80,000
Depreciation—Office equipment 50,000
Insurance20,000
Office rent30,000
Income640,000


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.

The flexible budget for 12,000 units is: Sales 2,436,000,Variable costs1,416,000,Fixed costs210,000, and Income 810,000.1. To compute the total variable cost per unit, we need to determine the total variable costs and divide it by the number of units.From the giveninformation, we can identify the variable costs as follows:Adding these costs together, we get: 230,000 + 440,000 + 280,000 + 80,000 + 150,000 = 1,180,000.Since the total variable cost is divided by the number of units (10,000 units), we can calculate the totalvariablecost per unit as: 1,180,000 / 10,000 units = 118 per unit.2. To compute the total fixed costs, we need to sum up all the fixed costs provided:Adding these costs together, we get: 30,000 + 80,000 + 50,000 + 20,000 + 30,000 = 210,000.The total fixed costs amount to 210,000.3. To prepare a flexible budget at activity levels of 8,000 units and 12,000 units, we need to adjust the variable costs accordingly.For 8,000 units:- Total variable costs for 8,000 units: 118 * 8,000 units = 944,000- Total fixed costs remain the same at210,000Therefore, the flexible budget for 8,000 units would be:- Sales: 203 * 8,000 units = 1,624,000Income: Sales - Variable costs - Fixed costs = 1,624,000 - 944,000 - 210,000 = 470,000For 12,000 units:- Total variable costs for 12,000 units: 118 * 12,000 units = 1,416,000- Total fixed costs remain the same at 210,000Theflexible budgetfor 12,000 units would be:- Sales: 203 * 12,000 units = 2,436,000- Income: Sales - Variable costs - Fixed costs = 2,436,000 - 1,416,000 - 210,000 = 810,000To know aboutVariable costsvisit:brainly.com/question/14083670#SPJ11...

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