Hamwey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31,2017.

Hamwey Inc., produced 70,000 units of product in 2017. Hamwey's management is estimating costs for 2018 on the basis of

2017 numbers. The following additional information is available for 2018.

1.	Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2018. Estimate total manufacturing costs for 2018.
2.	Calculate Morin's total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018.
3.	How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Morin?

Account Classification Amount Direct materials All variable $ All variable Direct manufacturing labor Power 367,500 297,500 87,500 70,000 All variable Supervision labor 20% variable 60% variable 35,000 Materials-handling labor Maintenance labor 40% variable 70,000 Depreciation 0% variable 96,000 Rent, property taxes, and administration 0% variable 90,000 Account Classification Amount Direct materials All variable $ All variable Direct manufacturing labor Power 367,500 297,500 87,500 70,000 All variable Supervision labor 20% variable 60% variable 35,000 Materials-handling labor Maintenance labor 40% variable 70,000 Depreciation 0% variable 96,000 Rent, property taxes, and administration 0% variable 90,000