Selected Data About Pitkin Company's Manufacturing Operations at Two Levels

Essay

Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below:

$\begin{array}{|l|r|r|}\hline \text { Number of Units Produced } & 10,000 & 15,000 \\\hline \text { Total Manufacturing Costs } & \$ 157,000 & \$ 225,000 \\\hline \text { Direct Material Cost per Unit } & \$ 4 & \$ 4 \\\hline \text { Direct Labour Cost per Unit } & \$ 6 & \$ 6 \\\hline\end{array}$