Tempo Company's fixed budget (based on sales of 10,000 units) folllows.

Fixed Budget
Sales (10,000 units $212 per unit)	2,120,000
Costs
Direct materials	240,000
Direct labor	440,000
Indirect materials	270,000
Supervisor salary	40,000
Sales commissions	90,000
Shipping	160,000
Administrative salaries	90,000
DepreciationOffice equipment	60,000
Insurance	30,000
Office rent	40,000
Income	660,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.

Prepare a flexible budget at activity levels of 8,000 units and 12,000 units