Unit- and Batch-Level Cost Drivers KC, a fast-food restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated the costs of a batch of fried chicken for KC’s all-you-can-eat Friday Fried Fiesta. Each batch must be 100 pieces. The chicken is precut by the chain headquarters and sent to the stores in 10-piece bags. Each bag costs $3. Preparing a batch of 100 pieces of chicken with KC’s special coating takes one employee two hours. The current wage rate is $8 per hour. Another cost driver is the cost of putting fresh oil into the fryers. New oil, costing $3, is used for each batch. Round answers to two decimal places, when applicable. (a) Determine the cost of preparing one batch of 100 pieces $ 49 (b) If management projects that it will sell 300 pieces of fried chicken, determine the total batch and unit costs Batch cost $147 Unit cost $ 0.49 (c) If management estimates the sales to be 250 pieces, determine the total costs. $ 122 X (d) How much will the batch costs increase if the government raises the minimum wage to $10 per hour?
