Hurricane Wings Has Budgeted the Following Costs for a Month

question 72

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.What is the budgeted total fixed cost?

• A)$7,300
• B)$2,400
• C)$8,400
• D)$10,800

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Definitions:

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to a taxing authority.

Employers Withhold

The practice of employers deducting a portion of employees' wages or salaries for tax purposes before issuing the net amount to the employee.

Tax Return

The form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information, used to calculate tax liability.

Tax Liability

The complete sum of tax a person or organization is legally required to pay to a tax-collecting body.