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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. 1. Compute total varlable cost per unit. 2. Compute total fixed costs. 3. Prepare

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Tempo Company's fixed budget (based on sales of 12,000 units) folllows. 1. Compute total varlable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ Flexible Budget } & \multicolumn{2}{|c|}{ Flexible Budget for: } \\ \hline & \begin{tabular}{l} Variable Amount \\ per Unit \end{tabular} & \begin{tabular}{c} Total Fixed \\ Cost \end{tabular} & \begin{tabular}{l} Units Sales \\ of 10,000 \end{tabular} & \begin{tabular}{l} Unit Sales of \\ 14,000 \end{tabular} \\ \hline \multicolumn{5}{|c|}{p} \\ \hline \multicolumn{5}{|l|}{ Variable costs } \\ \hline \multicolumn{5}{|l|}{ Direct materials } \\ \hline \multicolumn{5}{|l|}{ Direct labor } \\ \hline \multicolumn{5}{|l|}{ Indirect materials } \\ \hline \multicolumn{5}{|l|}{ Sales commissions } \\ \hline \multicolumn{5}{|l|}{ Shipping } \\ \hline & & P & 7 & F \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{\begin{tabular}{l} Total variable costs \\ Contribution margin \\ Fixed \end{tabular}}} \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l|l|} Fixed costs \\ Supenisor salary \end{tabular}} \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l|} Supervisor salary \\ Administration \\ \end{tabular}} \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Administration salaries \\ Depreciation - Office equipment \end{tabular}} \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Depreciation-Office equipment \\ Insurance \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Insurance } \\ \hline \multicolumn{5}{|l|}{ Otfice rent } \\ \hline r & & P & & \\ \hline Total foxed costs & & $ & 0 & 0 \\ \hline Income & & & & \\ \hline \end{tabular}

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