Tempo Company's fixed budget (based on sales of 12,000 units) folllows.

Fixed Budget Sales (12,000 units $220 per unit) 2,640,000 Costs Direct materials 276,000

Direct labor 516,000

Indirect materials 336,000

Supervisor salary 76,000

Sales commissions 96,000

Shipping 168,000

Administrative salaries 126,000

DepreciationOffice equipment 96,000

Insurance 66,000

Office rent 76,000 Income 808,000

Compute total variable cost per unit.

Compute total fixed costs.

Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.