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Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units $214 per unit) 2,140,000 Costs Direct materials 240,000 Direct
Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units $214 per unit) 2,140,000 Costs Direct materials 240,000 Direct labor 430,000 Indirect materials 270,000 Supervisor salary 40,000 Sales commissions 90,000 Shipping 150,000 Administrative salaries 90,000 DepreciationOffice equipment 60,000 Insurance 30,000 Office rent 40,000 Income 700,000 Compute total variable cost per unit. Compute total fixed costs. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units
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