2) Tom's Famous Bar-B-Q Sauce Company is in the process of preparing a production budget for October 2023. Actual results for September 2023 are as follows: September 2019 Actual:

Total jars of sauce produced 40,000 #

Ingredient Costs $28,000

Labor Costs $16,000

Rent $9,000

Depreciation $6,000

Other fixed costs $10,000

Total Production Costs $69,000

a) What costs are fixed and what costs are variable ? Rent,Other fixed costs are fixed the variable costs are Labor and Ingredients, Depreciation???

b) Prepare the October Production Budget assuming the sales forecast is 48,000 jars of sauce.

c) Calculate the actual cost per unit in September and the budgeted cost per unit in October.