Exercise $21-3($Algo$)$ Preparing flexible budgets LO P$1$

Tempo Company's fixed budget $($based on sales of $16,000$ units$)$ folllows.

$\backslash$table$[[$Fixed Budget$],[$Sales $(16,000$ units $$$$203$ per unit$),3,248,000],[$Costs$,],[$Direct materials,$384,000],[$Direct labor,$688,000],[$Indirect materials,$432,000],[$Supervisor salary,$184,000],[$Sales commissions,$144,000],[$Shipping$,240,000],[$Administrative salaries,$234,000],[$Depreciation$-$Office equipment,$204,000],[$Insurance$,174,000],[$office rent,$184,000],[$Income$,380,000]]$

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.

Compute total variable cost per unit.

Total variable cost per unit

Compute total fixed costs.

Total fixed costs

$000$ units.

$\backslash$table$[[$TEMPO COMPANY$],[,$Flexible Budget,Flexible Budget for:$],[,$Varlable Amount per Unit,Total Fixed Cost,Units Sales of $14,000,$Unit Sales of $18,000],[$P$,,,,],[$Variable costs,,,,$],[\backslash ,,,,],[,,,,,],[,,,,],[,,,,],[,.,,,],[,,,,],[+,0\mathrm{.}00,,0,0],[,,,,],[$Fixed costs,,,,$],[,,,,],[,,,,,],[?,,,,],[$T$,,,,],[?,,,,],[?,,,,],[*,,$$ $0,$$ $0,$$$0$