Unit-and Batch-Level Cost Drivers Kentucky Fried Chicken (a reportable operating segment of Yum Brands Inc.), a fast-food restaurant serves fried chicken. The managers are considering an "all you can eat" promotion and want to know the costs before setting a price. Each batch must be 50 pieces. The chicken is precut by the chain headquarters and sent to the stores in 10-piece bags. Each bag costs $5. Preparing a batch of 50 pieces of chicken with KFC's special coating takes one employee two hours. The current wage rate is $10 per hour. Another cost driver is the cost of putting fresh oil into the fryers. New oil, costing $9, is used for each batch. Round answers to two decimal places, when applicable. (a) Determine the cost of preparing one batch of 50 pieces. $ 54 (b) If management projects that it will sell 150 pieces of fried chicken, determine the total cost and the cost per piece Total cost $ 162 Unit cost $ 1.08 (c) if management estimates the sales to be 350 pieces, determine the total costs (c) If management estimates the sales to be 350 pieces, determine the total costs. $ 0 (d) How much will the batch costs increase if the government raises the minimum wage to $12 per hour? $ 4 (e) If management decided to increase the number of pieces in a batch to 100, determine the cost of preparing 350 pieces Assume that the batch would take twice as long to prepare, pay rate stays at $10 per hour, and management wants to replace the oil after 100 pieces are cooked. Assume no change in expected sales volume. Note that only full batches can be prepared $ 396 total cost Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 1 3.300 $90.970 2 1,650 55,412 3 4,840 132.770 4 3.080 90090 5 2.530 76,752 6 1,320 47,410 7 2.200 68.750 Required (a.) Use information from the high- and low.volume months to develop a cost-estimating equation for monthly order- processing costs 50 + $ 24.25 X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter Diagram $0 +50 x