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What is the total variable cost per unit

    Assignment Instructions

    Assignment ID: FG133134485

    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


    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?

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