Question

exercise 21-3 (algo) preparing flexible budgets lo p1

tempo companys fixed budget (based on sales of 12,000 units) follows.

fixed budget
sales (12,000 units * $207 per unit): 2,484,000
costs
direct materials: 276,000
direct labor: 528,000
indirect materials: 336,000
supervisor salary: 76,000
sales commissions: 96,000
shipping: 180,000
administrative salaries: 126,000
building rent: 96,000
insurance: 66,000
office rent: 76,000
income: 628,000

complete this question by entering your answers in the tabs below.
required 1 | required 2 | required 3
compute total fixed costs.
total fixed costs:

Explanation:

Identify fixed cost components

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LATEXBLOCK0
$$

Sum the fixed costs

$$
LATEXBLOCK1
$$

Answer:

Total fixed costs <blank>\(440,000\)</blank>