Exercise 21-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. \begin{tabular}{|c|c|c|c|c|c|} \hline Direct labor & ( & 44.00 & & 616,000 & 792,000 \\ \hline Indirect materials & 0 & 27.00 & & 378,000 & 486,000 \\ \hline Sales commissions & (2) & 8.00 & & 112,000 & 144,000 \\ \hline Shipping & 2 & 16.00 & & 224,000 & 288,000 \\ \hline Total variable costs & & 118.00 & & 1,652,000 & 2,124,000 \\ \hline Contribution margin & 0 \$ & 91.00 & & 1,274,000 & 1,638,000 \\ \hline \multicolumn{6}{|l|}{ Fixed costs } \\ \hline Supervisor salary & 0 & & 250,000 & 250,000 & 250,000 \\ \hline Administration salaries & 2 & & 300,000 & 300,000 & 300,000 \\ \hline Depreciation-Office equipment & 0 & & 270,000 & 270,000 & 270,000 \\ \hline Insurance & 0 & & 240,000 & 240,000 & 240,000 \\ \hline Office rent & 0 & & 250,000 & 250,000 & 250,000 \\ \hline Total fixed costs & 0 & & $1,310,000 & $3.310,000 & $$1,310,000 \\ \hline Income & & & & & \\ \hline \end{tabular} Required 2 Raquired s > Prepare a flexible budaet at activitv levels of 14.000 units and 18.000 units