Hall Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

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Hall Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

E5-1      

Hall Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

Costs Incurred

Production in Units         5,000     10,000

Production Costs     Total Cost   Cost/Unit   Total Cost   Cost/Unit

Direct materials       $8,250   $1.65     $16,500 $1.65

Direct labor         9,500     1.90        19,000   1.90

Utilities 1,500     0.30        2,50


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