Exercise 21-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) follows.

Fixed Budget
Sales (18,000 units $208 per unit)	3,744,000
Costs
Direct materials	450,000
Direct labor	756,000
Indirect materials	486,000
Supervisor salary	250,000
Sales commissions	162,000
Shipping	270,000
Administrative salaries	300,000
DepreciationOffice equipment	270,000
Insurance	240,000
Office rent	250,000
Income	310,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.

Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs Required 1 Required 2 heequired 3 Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. TEMPO COMPANY Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 16,000 20,000 per Unit Variable costs