Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $213 per unit) 2,982,000 Costs Direct materials 322,000 Direct labor 602,000 Indirect materials 392,000 Supervisor salary 122,000 Sales commissions 112,000 Shipping 210,000 Administrative salaries 172,000 DepreciationOffice equipment 142,000 Insurance 112,000 Office rent 122,000 Income 674,000

1. Compute total variable cost per unit.

2. Compute total fixed costs.

3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.