Tempo Company’s fixed budget (based on sales of 14,000 units)for the first quarter of calendar year 2017 reveals thefollowing.
| Fixed Budget | ||||||||
| Sales (14,000units) | $ | 3,066,000 | ||||||
| Cost of goodssold | ||||||||
| Directmaterials | $ | 350,000 | ||||||
| Directlabor | 616,000 | |||||||
| Productionsupplies | 392,000 | |||||||
| Plant managersalary | 150,000 | 1,508,000 | ||||||
| Grossprofit | 1,558,000 | |||||||
| Sellingexpenses | ||||||||
| Salescommissions | 112,000 | |||||||
| Packaging | 224,000 | |||||||
| Advertising | 100,000 | 436,000 | ||||||
| Administrativeexpenses | ||||||||
| Administrativesalaries | 200,000 | |||||||
| Depreciation—office
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