Aspen company produces widgets auguest budgeted production, Ask an Expert

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Aspen company produces widgets. Auguest 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 Spetember, Aspen expects to produce 120,000 widgets. Assuming no structural changes, why is Aspen's budgeted production cost per widget for September?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9972474

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