Cordova Company would like to estimate production costs on an annual basis. Costs incurred for direct materials and direct labor are variable costs. The accounting records indicate that the following production costs were incurred last year for 50,000 units.

Required 

Use account analysis to estimate the fixed costs per year, and the variable cost per unit.

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Direct materials Direct labor Manufacturing overhead $100,000 215,000 300,000 (20% fixed; 80% variable)