Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Budgeted units Selling price per unit 7,000 $400 Fixed Budget (based on sales of 7,000 units) Sales $2,800,000 Costs Direct materials 280,000 Direct labor 490,000 Indirect materials 175,000 Supervisor salary 65,000 Sales commissions 140,000 Shipping 154,000 Administrative salaries 210,000 Depreciation-Office equipment 35,000 Insurance 20,000 Office rent 36,000 Income $1,195,000 Required: 1. Compute total variable cost per unit. 52. Compute total fixed costs. 5 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units.. + Flexible Budget 6,000 8,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs TEMPO COMPANY Flexible Budget for: Variable Amount Units Sales of Units Sales of per Unit $400.00 6,000 8,000 Contribution margin Fixed costs Supervisor salary 65,000 65,000 Administrative salaries 210,000 210,000 Depreciation-Office equipment 35,000 35,000 Insurance 20,000 20,000 Office rent 36,000 36,000 Total fixed costs 366,000 366,000 Income