Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following.

	Fixed Budget
Sales (12,000 units $214 per unit)						$	2,568,000
Cost of goods sold
Direct materials		$	300,000
Direct labor			516,000
Production supplies			324,000
Plant manager salary			100,000				1,240,000
Gross profit							1,328,000
Selling expenses
Sales commissions			96,000
Packaging			180,000
Advertising			100,000				376,000
Administrative expenses
Administrative salaries			150,000
Depreciationoffice equip.			120,000
Insurance			90,000
Office rent			100,000				460,000
Income from operations						$	492,000

(1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 10,000 units. (4) Compute the income from operations for sales volume of 14,000 units.

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	Standard	Actual
Direct materials	5 lbs. @ $8 per lb.		36,100	lbs. @ $8.10 per lb.
Direct labor	2 hrs. @ $17 per hr.		13,900	hrs. @ $17.50 per hr.
Overhead	2 hrs. @ $12 per hr.	$	175,600
Units manufactured			7,100

(1) Compute the standard cost per unit. (2) Compute the total cost variance for June.