Hurricane Wings has budgeted the following costs for a month in which 24,000

Question:

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.

Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400

Each wing sells for $0.80 each. What is the budgeted fixed cost per unit?

$0.80
$0.17
$0.10
$0.35

Answer:

Total fixed costs=(1100+900+400)=$2400

Hence budgeted fixed cost per unit=($2400/24000)

which is equal to

=$0.10

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