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What is the total variable cost per unit

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Question - Tempo Company's fixed budget (based on sales of 18,000 units) follows:

Fixed Budget

Sales (18,000 units × $216 per unit) 3,888,000

Costs

Direct materials 432,000

Direct labor 756,000

Indirect materials 504,000

Supervisor salary 232,000

Sales commissions 144,000

Shipping 288,000

Administrative salaries 282,000

Depreciation-Office equipment 252,000

Insurance 222,000

Office rent 232,000

Income 544,000

Required -

1. What is the total variable cost per unit?

2. What is the total fixed costs?

3. What is the flexible budget at activity levels of 16,000 units and 20,000 units?

Reference no: EM133134485

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