The accounting records for Portland Products report thefollowing manufacturing costs for the past year: Direct materials $360,000 Direct labor 268,000 Variable overhead 233,000 Productionwas 180,000 units. Fixed manufacturing overhead was $843,000. Forthe coming year, costs are expected to increase as follows: directmaterials costs by 20 percent, excluding any effect of volumechanges; direct labor by 4 percent; and fixed manufacturingoverhead by 10 percent. Variable manufacturing overhead per unit isexpected to remain the same. Required: a. Prepare a cost estimatefor a volume level of 144,000 units of product this year. (Do notround intermediate computations.) b. Determine the costs per unitfor last year and for this year. (Round your answers to 2 decimalplaces.)
