Volcano Hot Wings has budgeted the following costs for a month in which 12,000 wings will be cooked and sold.

Wings, breading, and sauce $ 4,900 Direct labor (Variable) 3,500 Rent 1,100 Depreciation 900 Other fixed costs 400 Each wing sells for $1.60 each. How much is the budgeted variable cost per unit?

Multiple Choice

• $0.70
• $0.80
• None of these answer choices are correct.
• $0.90
• $1.60