in A 1 2 Tempo Company's fixed budget (based on sales of 7,000 units) follows. 3 4 Fixed Budget Sales (7,000 units x $400 per unit) Costs 6 7 8 9 10 11 12 13 Administrative salaries 14 15 16 17 Income 18 19 Required: 20 1. Compute total variable cost per unit. 21 Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Depreciation Office equipment Insurance Office rent B $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 22 (Use cells A2 to D17 from the given information to complete this question.) 23 24 Total variable cost per unit 25 26 2. Compute total fixed costs. 27 28 (Use cells A2 to D17 from the given information to complete this question.) 29 30 Total fixed costs D E Budgeted units Budgeted selling price per unit $400 7,000 A 31 32 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. 36 37 38 39 40 Sales 41 Variable costs 42 Direct labor 43 Direct materials Indirect materials Sales commissions Shipping 44 45 33 34 (Use cells A2 to E32, as well as cells A40 to E56 from the Flexible Budget, to complete this question.) 35 46 47 Total variable costs 48 Contribution margin 49 Fixed costs 50 Administration salaries 51 Depreciation Office equipment 52 Insurance 53 Office rent 54 Supervisor salary 55 Total fixed costs 56 Income B 331 33333 TEMPO COMPANY Flexible Budget Variable Amount per Unit D Total Fixed Cost Unit Sales 6,000 E Units Sales of 6,000 8,000 Flexible Budget for: Unit Sales of 8,000