Exercise 8-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 3,280,000 Fixed Budget Sales (16,000 units X $205 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance office rent Income 400,000 688,000 416,000 200,000 112,000 256,000 250,000 220,000 190,000 200,000 348,000 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. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. TEMPO COMPANY Flexible Budget Flexible Budget for: Variable Amount Total Fixed Units Sales Unit Sales of Cost of 14,000 18,000 $ 205.00 per Unit Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping 0.00 0 0 Fixed costs 0 $ 0 $ 0