Question - Aspen company produces widgets. August production and costs are:
Widgets produced 80,000
Direct material (variable) $20,000
Direct labor (variable) 40,000
Supplies (variable) 20,000
Supervision (fixed) 30,000
Depreciation (fixed) 25,000
Others (fixed) 5,000
Total $140,000
In September, Aspen expects to produce 100,000 widgets. Assuming no structural changes, what is Aspen's production cost per widget in September?
a. $1.60
b. $1.75
c. $1.40
d. $1.00