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?