Exercise 8-3 (Static) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000 units x $400 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-Office equipment Insurance Office rent Income $ 2,800,000 280,000 490,000 175,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit $ 1,062,000 Required 1 Required 2 > Exercise 8-3 (Static) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000 units x $400 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions: Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income $ 2,800,000 280,000 490,000 175,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs $ 366,000 < Required 1 Required 3> Check my work mode: This shows what is correct or incorre Required 1 Required 2 Required 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 Fixed costs TEMPO COMPANY Flexible Budget Flexible Budget for: Variable Amount per Units Unit Total Fixed Cost Sales of Sales of Unit 6,000 8,000 0.00 0 Exercise 8-4 (Static) Preparing flexible budget performance report LO P1 Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable The company budgets a selling price of $80 per unit and variable costs of $35 per unit. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Flexible Budget Performance Report Flexible Budget (10,800 units) Actual Results Variances Favorable/Unfavorable (10,800 units) $ 21,000 Favorable 351.000 486,000 270,000 285,000 Income