Question

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)						$	2,954,000
Cost of goods sold
Direct materials		$	336,000
Direct labor			602,000
Production supplies			378,000
Plant manager salary			136,000				1,452,000
Gross profit							1,502,000
Selling expenses
Sales commissions			112,000
Packaging			210,000
Advertising			100,000				422,000
Administrative expenses
Administrative salaries			186,000
Depreciation—office equip.			156,000
Insurance			126,000
Office rent			136,000				604,000
Income from operations						$	476,000

Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)

Answer 1