Farout Cards makes and produces greeting cards. Every month, it produces from 5 to 15 new Sram Account Analysis Method in batches. At the end of the month, the company destroys the master copy of all existing cards so that (LO 4)

it produces new card products each month. The costs of designing the card, including design and art work, are product-level costs. The costs of materials, ink, and other printing costs are unit-level costs. eXce!l The costs of setting up the production run are batch-level costs. All other costs are facility-level costs.

Farout’s accounting records report the following production costs for last December: mhhe.com/hilton4e Unit-level Costs .......0... $24,000 Batch-level Costs .............0. 8,000 Product-level costs ............ 18,000 Facility-level costs.............. 25,000 Production was 100,000 units for 10 different new products produced in 100 batches Costs for this coming December are expected to increase over last December’s costs as follows: the unit-level costs, 20 percent per unit; the batch-level costs, 10 percent per batch; the product-level costs, 10 percent per product; and the facility-level costs, 10 percent for the month.
Required

a. What is the unit-level cost per unit for last December?

b. What is the estimated unit-level cost per unit for this coming December?

c. What are the estimated facility-level costs for this coming December?

d. If Farout expects to produce 120,000 units for 12 new products in 100 batches this coming December, what will be its estimated total costs for the month?