Hurricane Wings Has Budgeted the Following Costs for a Month

question 42

Multiple Choice

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. $$\begin{array}{l}\text { Wings, breading, and }\\\begin{array} { l r } \text { Sauce } & \$ 4,900 \\\text { Direct labor (Variable) } & 3,500 \\\text { Rent } & 1,100 \\\text { Depreciation } & 900 \\\text { Other fixed costs } & 400\end{array}\end{array}$$ Each wing sells for $0.80 each.How much is the budgeted variable cost per unit?

• A)$0.35
• B)$0.45
• C)$0.80
• D)None of these answer choices are correct.

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