The accounting records for Portland Products report the following manufacturing costs for the past year....
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Accounting
The accounting records for Portland Products report the following manufacturing costs for the past year.
Direct materials
$
340,000
Direct labor
261,000
Variable overhead
230,000
Production was 150,000 units. Fixed manufacturing overhead was $820,000.
For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same.
Required:
a. Prepare a cost estimate for a volume level of 120,000 units of product this year. b. Determine the costs per unit for last year and for this year.
Cost Per Unit Last Year?
Cost Per Unit This Year?
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