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

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

 

Sales (12,000 units)						$	2,424,000
Cost of goods sold
Direct materials		$	276,600
Direct labor			515,280
Production supplies			318,360
Plant manager salary			76,600				1,186,840
Gross profit							1,237,160
Selling expenses
Sales commissions			105,600
Packaging			184,080
Advertising			100,000				389,680
Administrative expenses
Administrative salaries			126,600
Depreciation—office equip.			96,600
Insurance			66,600
Office rent			76,600				366,400
Income from operations						$	481,080

 

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.)

Explanation:

Variable amount per unit :

Equals total variable costs divided by the volume of 12,000 units.