Tempo company's fixed budget (based on sales of 14,000 units) folllows. fixed budget sales (14,000 units * $202 per unit) 2,828,000 costs direct materials 336,000direct labor 588,000indirect materials 392,000supervisor salary 136,000sales commissions 98,000 shipping 210,000administrative salaries 186,000depreciation-office equipment 156,000 insurance 126,000office rent 136,000income 464,000 1. compute total variable cost per unit. 2. compute total fixed costs. 3. prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Q&A Education