Homework SourseHurricane Wings has budgeted the following costs for a month
Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Each wing sells for $0.80 each. What is the budgeted fixed cost per unit?
| Wings, breading, and sauce | $4,900 | ||
| Direct labor (Variable) | 3,500 | ||
| Rent | 1,100 | ||
| Depreciation | 900 | ||
| Other fixed costs | 400 |
Solution
Total fixed costs=(1100+900+400)=$2400
Hence budgeted fixed cost per unit=($2400/24000)
which is equal to
=$0.10
