Chapter 21 Ex 21-2

Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.


Sales (14,000 units)			$	2,842,000
Cost of goods sold
Direct materials	$	328,160
Direct labor		590,520
Production supplies		391,160
Plant manager salary		128,160		1,438,000

Gross profit				1,404,000
Selling expenses
Sales commissions		100,100
Packaging		220,080
Advertising		100,000		420,180

Administrative expenses
Administrative salaries		178,160
Depreciation—office equip.		148,160
Insurance		118,160
Office rent		128,160		572,640

Income from operations			$	411,180

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)

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