Exercise 5-32 (Static) Methods of Estimating Costs: Account Analysis (LO 5-3) St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Indirect materials Indirect labor Supervision Depreciation Maintenance Total Fixed $ 2,000 1,500 Variable $ 7,000 Total $ 9,000 8,000 15,500 2,500 17,000 10,500 35,000 3,000 38,000 15,000 20,000 35,000 $ 61,500 $ 48,000 $ 109,500 Direct materials for the month amounted to $92,500. Direct labor for the month was $187,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month. Complete this question by entering your answers in the tabs below. Required A Required B No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. (Do not round intermediate calculations.) Cost Item Next Month's Costs Direct materials $ 92,500 Direct labor 187,500 Variable overhead Fixed overhead 7,000 Total costs $ 287,000