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Exercise 8-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000...

Exercise 8-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.

Fixed Budget
Sales (18,000 units) $ 3,744,000
Cost of goods sold
Direct materials $ 414,000
Direct labor 774,000
Production supplies 486,000
Plant manager salary 214,000 1,888,000
Gross profit 1,856,000
Selling expenses
Sales commissions 126,000
Packaging 252,000
Advertising 100,000 478,000
Administrative expenses
Administrative salaries 264,000
Depreciation—office equip. 234,000
Insurance 204,000
Office rent 214,000 916,000
Income from operations $ 462,000


Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)

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