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Tempo Company's fixed budget (based on sales of 10,000 units) folllows. 2,010,000 Fixed Budget Sales (10,000 units * $201 per unit) Costs Direct materials Direct
Tempo Company's fixed budget (based on sales of 10,000 units) folllows. 2,010,000 Fixed Budget Sales (10,000 units * $201 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income 230,000 430,000 280,000 30,000 80,000 160,000 80,000 50,000 20,000 30,000 620,000 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. Required 1 Required 2 Required 3 Required 2 Compute total variable cost per unit. Total variable cost per unit Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. TEMPO COMPANY Flexible Budget Flexible Budget for: Variable Amount Total Fixed Units Sales Unit Sales of Cost of 8,000 12,000 per Unit Variable costs 0.00 0 0 Fixed costs 0 $ 0 $ 0
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