Item1 Item 1 Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $219 per unit) 3,066,000 Costs Direct materials 336,000 Direct labor 602,000 Indirect materials 378,000 Supervisor salary 136,000 Sales commissions 112,000 Shipping 224,000 Administrative salaries 186,000 DepreciationOffice equipment 156,000 Insurance 126,000 Office rent 136,000 Income 674,000 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