Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units x $211 per unit) Costs Direct materials Direct labor Indirect materials 2,954,000 350,000 602,000 378,000 Supervisor salary 150,000 Sales commissions 112,000 Shipping 210,000 Administrative salaries 200,000 Depreciation-office equipment 170,000 Insurance 140,000 office rent 150,000 Income 492,000 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. Amount per Total Fixed Cost Sales of Sales of Unit 12,000 16,000 $ Sales $ 211.00 2,532,000 3,376,000 Variable costs Direct materials 25.00 300,000 400,000 Direct labor 43.00 516,000 688,000 Indirect materials 27.00 324,000 432,000 Sales commissions. 8.00 96,000 128,000 Shipping 15.00 180,000 240,000 Total variable costs 118.00 1,416,000 1,888,000 Fixed costs Supervisor salary Administration salaries Depreciation-Office equipment Insurance Office rent 150,000 ( 150,000 150,000 200,000 200,000 200,000 170,000 170,000 170,000 140,000 140,000 140,000 150,000 150,000 150,000 $ 810,000 $810,000 $810,000 $ 306,000 $ 524,000 (