Exercise $21-3($Algo$)$ Preparing flexible budgets LO P$1$

Tempo Company's fixed budget $($based on sales of $10,000$ units$)$ folllows.

Fixed Budget

Sales $(10,000$ units $\backslash$times $$211$ per unit$)2,110,000$

Costs

Direct materials $230,000$

Direct labor $420,000$

Indirect materials $270,000$

Supervisor salary $30,000$

Sales commissions $70,000$

Shipping $150,000$

Administrative salaries $80,000$

Depreciation$$Office equipment $50,000$

Insurance $20,000$

Office rent $30,000$

Income $760,000$

$1.$ Compute total variable cost per unit.

$2.$ Compute total fixed costs.

$3.$ Prepare a flexible budget at activity levels of $8,000$ units and $12,000$ units.Prepare a flexible budget at activity levels of $8,000$ units and $12,000$ units.