Solution-Compute total variable cost per unit

Compute total variable cost per unit

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Reference no: EM133061330

Question - Tempo Company's fixed budget (based on sales of 18,000 units) follows.

Fixed Budget
Sales (18,000 units x $208 per unit)	3,744,000
Costs
Direct materials	414,000
Direct labor	756,000
Indirect materials	486,000
Supervisor salary	214,000
Sales commissions	144,000
Shipping	270,000
Administrative salaries	264,000
Depreciation Office equipment	234,000
Insurance	204,000
Office rent	214,000
Income	544,000

Required -

1. Compute total variable cost per unit.

2. Compute total fixed costs.

3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.

Reference no: EM133061330

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Compute total variable cost per unit

Reference no: EM133061330

Reference no: EM133061330

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