Records at Hal's Accounting Services show the following costs for year 1. Direct materials and supplies Employee costs Total overhead $ 44,000 2,900,000 1,300,000 Production was 50,000 billable hours. Fixed overhead was $740,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 40,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2. Required A Required B Year 2 production is expected to be 40,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? (Do not round intermediate calculations.) Year 2 Cost Cost Item Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs Required A Required B Determine the total costs per billable hour for year 1 and year 2. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cost per Billable Hour Year 1 Year 2