Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units $219 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income 2,190,000 250,000 430,000 270,000 50,000 90,000 150,000 100,000 70,000 40,000 50,000 690,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit $ 139 Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. TEMPO COMPANY Flexible Budget Flexible Budget for: Variable Amount per Total Fixed Cost Units Sales of Unit Sales of Unit 8,000 12,000 $ $ Sales Variable costs $ 219.00 1,752,000 2,628,000 Direct materials 45.00 x 360,000 540,000 Direct labor 43.00 344,000 516,000 Indirect materials 27.00 216,000 324,000 Sales commissions 9.00 72,000 108,000 Shipping 15.00 120,000 180,000 139.00 1,112,000 1,668,000 Fixed costs $ 0 $ 0 $ 0 For Month ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Variable Amount per Unit $ 100 35 15 4 11 Total variable costs 65 $ 35 Contribution margin Fixed costs Depreciation-Machinery Supervisor salary Insurance Depreciation-office equipment Administrative salaries Total fixed costs Income Total Fixed Fixed Budget Cost $ 70,290 41,710 (7,720 units) $ 772,000 270,200 115,800 30,880 84,920 501,800 $ 270,200 70,290 Actual Results (7,420 units) $ 758,670 274,720 112,900 29,080 80,710 497,410 $ 261,260 70,290 41,710 42,920 10,330 7,620 33,900 10,330 10,330 7,620 7,620 33,900 30,680 $ 163,850 163,850 161,840 $ 106,350 $ 99,420 Prepare a flexible budget performance report for July at activity level of 7,420 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) NINA COMPANY Flexible Budget Performance Report Flexible For Month Ended July 31 Budget (7,420 units) Actual Results (7,420 units) Variances Favorable/Unfavorable Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total Variable Costs Contribution margin Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation-Office equipment Administrative salaries Total Fixed Costs Income 0 0 0