Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit 4.2 board feet of wood at 56 per board foot 8.8 pounds of plastic at $8.50 per pound Direct labor per unit 0.4 hour at $25 per hour Overhead per unit Indirect labor Indirect materials Power Equipment Facilities Total overhead per unit $ 1.70 8.75 0.25 1.80 1.90 $ 6.40 The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of 30,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 37.500 units per year. Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell 32,000 units. Finished goods Inventory is targeted to decrease from the current balance of 4,000 units to 3,500 units as part of a corporate-wide Initiative to lower Inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no work-in-process Inventory. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year.