Tempo Company's fixed budget (based on sales of 7,000 units) follows. \begin{tabular}{|l|r|r|} \hline & Fixed Budget & Flexible Budget \\ \hline Budgeted units & 7,000 & 6,000 \\ \hline Selling price per unit & $400 & \\ \cline { 1 - 2 } & & \\ \hline Fixed Budget (based on sales of 7,000 units) & & \\ \hline Sales & $2,800,000 & \\ \hline Costs & 280,000 & \\ \hline Direct materials & 490,000 & \\ \hline Direct labor & 175,000 & \\ \hline Indirect materials & 65,000 & \\ \hline Supervisor salary & 140,000 & \\ \hline Sales commissions & 154,000 & \\ \hline Shipping & 210,000 & \\ \hline Administrative salaries & 35,000 & \\ \hline Depreciation-Office equipment & 20,000 & \\ \hline Insurance & 36,000 & \\ \hline Office rent & $1,195,000 & \\ \hline Income & & \\ \hline Required: & & \\ \hline 1. Compute total variable cost per unit. & & \\ \hline 2. Compute total fixed costs. & & \\ \hline 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. & \\ \hline \end{tabular} 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units