Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed costs Supervisor salary Administration salaries Depreciation Office equipment Insurance Office rent Total fixed costs Income TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost $ 218.00 Flexible Budget for: Units Sales Unit Sales of of 16,000 $3,488,000 20,000 $4,360,000| 23.00 368,000 460,000 42.00 672,000 840,000 28.00 448,000 560,000 9.00 144,000 180,000 16.00 256,000 320,000 118.00 $ 100.00 1,888,000 2,360,000 1,600,000 2,000,000 214,000 214,000 214,000 264,000 264,000 264,000 234,000 234,000 234,000 204,000 204,000 204,000 214,000 214,000 214,000 $ 1,130,000 $1,130,000 $1,130,000 $ 470,000 $ 870,000 Prepare a flexible budget at activity levels of 16,000 units and 20,000 units. TEMPO COMPANY Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Flexible Budget Variable Amount per Unit Total Fixed Cost $ 218.00 Flexible Budget for: Units Sales Unit Sales of of 16,000 $3,488,000 20,000 $4,360,000 23.00 368,000 460,000 42.00 672,000 840,000 28.00 448,000 560,000 9.00 144,000 180,000 16.00 256,000 320,000 Total variable costs 118.00 Contribution margin $ 100.00 Fixed costs Supervisor salary Administration salaries Depreciation-Office equipment Insurance 1,888,000 2,360,000 1,600,000 2,000,000 214,000 214,000 214,000 264,000 264,000 264,000 234,000 234,000 234,000 204,000 204,000 204,000 Exercise 23-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Direct labor Sales (18,000 units $218 per unit) Costs Direct materials Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 3,924,000 414,000 756,000 504,000 214,000 162,000 288,000 264,000 234,000 204,000 214,000 670,000 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