Tempo Company's fixed budget (based on sales of 16,000 units) folllows.

Fixed Budget
Sales (16,000 units $217 per unit)	3,472,000
Costs
Direct materials	384,000
Direct labor	704,000
Indirect materials	448,000
Supervisor salary	184,000
Sales commissions	112,000
Shipping	224,000
Administrative salaries	234,000
DepreciationOffice equipment	204,000
Insurance	174,000
Office rent	184,000
Income	620,000

1. Compute total variable cost per unit.
2. Compute total fixed costs.
3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.

Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. Required 2 Required 3