Cost Behavior and Forecasting Gibson Company manufactured 15,000 units of product last year and identified the following costs associated with the manufacturing activity:

Required Unit variable costs and total fixed costs are expected to remain unchanged next year. Calculate the unit cost and the total cost if 21,000 units are produced next year.

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Variable costs: Direct materials used Direct labor Indirect materials and supplies $1,056,000 1,995,000 240,000 Power to run plant equipment. 213,000 Fixed costs: Supervisory salaries. 930,000 Plant utilities (other than power to run plant equipment) 288,000 Depreciation on plant and equipment (straight-line, time basis) 144,000 Property taxes on building 195,000