empo Company's fixed budget (based on sales of 14,000 units) folllows.

Fixed BudgetSales (14,000 units $207 per unit)2,898,000Costs Direct materials336,000Direct labor602,000Indirect materials364,000Supervisor salary136,000Sales commissions112,000Shipping210,000Administrative salaries186,000DepreciationOffice equipment156,000Insurance126,000Office rent136,000Income534,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

TEMPO COMPANY Flexible BudgetFlexible Budget for: Variable Amount per UnitTotal Fixed CostUnits Sales of 12,000Unit Sales of 16,000Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs0.00 00Contribution margin Fixed costs Supervisor salary Administration salaries DepreciationOffice equipment Insurance Office rent Total fixed costs $0$0$0Income