Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
$\begin{array}{lr}
\text { Wings, breading, and sauce } & \$ 4,900 \
\text { Direct labor (Variable) } & 3,500 \
\text { Rent } & 1,10 0\
\text { Depreciation } & 900\
\text { Other fixed costs }&400
\end{array}$
Each wing sells for $0.80 each. What is the budgeted total variable cost?

Question

Quizplus · Accepted Answer

The budgeted total variable cost is the sum of the variable costs, which are the direct labor and the cost of wings, breading, and sauce. The direct labor cost is $3,500 and the cost of wings, breading, and sauce is $4,900. Therefore, the budgeted total variable cost is $3,500 + $4,900 = $8,400.

Hurricane Wings Has Budgeted the Following Costs for a Month