Question - Aspen company produces widgets. August budgeted production costs are below:
Widgets to be produced 100,000
Direct material (variable) $30,000
Direct labor (variable) 50,000
Supplies (variable) 25,000
Supervision (fixed) 40,000
Depreciation (fixed) 30,000
Other (fixed) 10,000
Total $185,000
In September, Aspen expects to produce 120,000 widgets. Assuming no structural changes, what is Aspen 's budgeted production cost per widget for September?
A) $1.72
B) $1.85
C) $1.54
D) $1.95