Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2015 reveals the following.
| Fixed Budget |
| Sales (14,000 units) |
|
$2,898,000 |
|
| Cost of goods sold |
|
|
|
| Direct materials |
322,000 |
|
|
| Direct labor |
616,000 |
|
|
| Production supplies |
392,000 |
|
|
| Plant manager salary |
122,000 |
1,452,000 |
|
| |
|
| Gross profit |
|
|
1,446,000 |
|
|
| Selling expenses |
|
|
|
|
|
| Sales commissions |
98,000 |
|
|
|
|
| Packaging |
210,000 |
|
|
|
|
| Advertising |
100,000 |
|
408,000 |
|
|
| |
|
|
|
| Administrative expenses |
|
|
|
|
|
| Administrative salaries |
172,000 |
|
|
|
|
| Depreciation-office equip. |
142,000 |
|
|
|
|
| Insurance |
112,000 |
|
|
|
|
| Office rent |
122,000 |
|
548,000 |
|
|
| |
|
| Income from operations |
|
|
$490,000 |
|
|
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.)