Tempo Company's fixed budget (based on sales of 18,000 units) folllows.

Fixed Budget Sales (18,000 units $209 per unit) 3,762,000

Costs Direct materials 450,000

Direct labor 756,000 Indirect materials 468,000

Supervisor salary 250,000

Sales commissions 126,000

Shipping 288,000

Administrative salaries 300,000

DepreciationOffice equipment 270,000

Insurance 240,000

Office rent 250,000

Income 364,000

1. Compute total variable cost per unit.

2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 16,000 units and 20,000 units.