Tempo Company's fixed budget $($based on sales of $12,000$ units$)$ folllows.

Fixed Budget

Sales $(12,000$ units $\backslash$times $$214$ per unit$)2,568,000$

Costs

Direct materials $276,000$

Direct labor $504,000$

Indirect materials $312,000$

Supervisor salary $76,000$

Sales commissions $84,000$

Shipping $168,000$

Administrative salaries $126,000$

Depreciation$$Office equipment $96,000$

Insurance $66,000$

Office rent $76,000$

Income $784,000$

Compute total variable cost per unit.

Compute total fixed costs.

Prepare a flexible budget at activity levels of $10,000$ units and $14,000$ units$\mathrm{.}1$

Exercise $8-3($Algo$)$ Preparing flexible budgets LO P$1$

$10$

points

points

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Tempo Company's fixed budget $($based on sales of $12,000$ units$)$ folllows.

$\backslash$table$[[,],[$Sales $(12,000$ units $\backslash$times $$214$ per unit$),2,568,000],[$Costs$,276,000],[$Direct materials,$504,000],[$Direct labor,$312,000],[$Indirect materials,$76,000],[$Supervisor salary,$84,000],[$Sales commissions,$168,000],[$Shipping$,126,000],[$Administrative salaries,$96,000],[$Depreciation$-$Office equipment,$66,000],[$Insurance$,76,000],[$Office rent,$784,000],[$Income$,]]$

Compute total variable cost per unit.

Compute total fixed costs.

Prepare a flexible budget at activity levels of $10,000$ units and $14,000$ units.