Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget Sales (7,000 units) $2,800,000 Cost of goods sold Direct materials $280,000 Direct labor 490,000 Production supplies 175,000 Plant manager salary 65,000 1,010,000 Gross profit 1,790,000 Selling expenses Sales commissions 140,000 Packaging 154,000 Advertising 125,000 419,000 Administrative expenses Administrative salaries 85,000 Depreciation office equip. 35,000 Insurance 20,000 office rent 36,000 176,000 Income from operations $1,195,000 Complete the following flexible budgets for sales volumes of 6,000, 7,000, and 8,000 units. TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 -----Flexible Budget ------ --...Flexible Budget at - Variable Total Fixed Amount per 6,000 units 7,000 units Cost 8,000 units Unit Variable costs: TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ----Flexible Budget- ------Flexible Budget at ----- Variable Amount per Total Fixed 6,000 units 7,000 units 8,000 units Cost Unit Variable costs: Fixed costs