Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000 units $212 per unit) 3,392,000 Costs Direct materials 368,000 Direct labor 704,000 Indirect materials 416,000 Supervisor salary 168,000 Sales commissions 128,000 Shipping 256,000 Administrative salaries 218,000 DepreciationOffice equipment 188,000 Insurance 158,000 Office rent 168,000 Income 620,000 Compute total variable cost per unit. Compute total fixed costs. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.

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.