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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. Costs Incurred Production in Units 5,000 10,000 Production Costs Total Cost Cost/Unit Total Cost Cost per 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 2,500 0.25 Rent 4,000 0.80 4,000 0.40 Maintenance 800 0.16 1,100 0.11 Supervisory salaries 1,000 0.20 1,000 0.10 Match the definitions to the terms. Remain constant in total, but vary on a per-unit basis. Contain both a fixed element and a variable element. Vary both in total and on a per unit basis. Vary in total but remain constant on a per-unit basis. Variable costs Fixed costs Mixed costs Classify each cost above as either variable, fixed, or mixed. Direct Materials Direct Labor Utilities Rent Maintenance Supervisory salaries
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