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Tempo Company's fixed budget (based on sales of 7,000 units) follows. $ 2,800,000 Fixed Budget Sales (7,000 units * $400 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation office equipment Insurance Office rent Income 280,000 490,000 175,000 65,000 140,000 154,000 210,000 35,000 20,000 36,000 1,195,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. TEMPO COMPANY Variable Amount per Unit Total Fixed Cost Units Sales of 6,000 Unit Sales of 8,000 3,200,000 Sales $ 400.00 2.400,000 Variable costs Direct materials 40.00 70.00 Direct labor Sales commissions Indirect materials Sales commissions 20.00 22.00 X 22.00 240,000 420,000 150,000 X 120,000 132,000 320,000 560,000 200,000 160,000 176,000 OOO X X BE > > 174.00 223.00 1,062,000 1,338,000 1.416,000 1,784,000 IS Total variable costs Contribution margin Fixed costs Supervisor salary Administration salaries Depreciation Office equipment Insurance Office rent >> 65,000 210,000 35,000 20,000 36,000 65,000 210,000 35,000 20,000 36,000 65,000 210,000 35,000 20,000 36,000 $366,000 $ 366,000 $ 1.195,000 $ 366,000 $ 1,418,000 Income

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