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Exercise 2 3 - 3 ( Algo ) Preparing flexible budgets LO P 1 Tempo Company's fixed budget ( based on sales of 1 4

Exercise 23-3(Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 14,000 units) folllows.
Fixed Budget
Sales (14,000 units \times $208 per unit)2,912,000
Costs
Direct materials 336,000
Direct labor 602,000
Indirect materials 378,000
Supervisor salary 136,000
Sales commissions 126,000
Shipping 210,000
Administrative salaries 186,000
DepreciationOffice equipment 156,000
Insurance 126,000
Office rent 136,000
Income 520,000
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.
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