The accounting records for Frankies Fixtures report the following production costs for the past year:

Direct Materials	$	641,000
Direct Labor		556,000
Variable Overhead		477,000

Production was 248,000 units. Fixed manufacturing overhead was $793,000.

For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same.

Required:

(a)

Prepare a cost estimate for a volume level of 258,000 units of product this year. (Do not round your intermediate computations. Round your final answers to nearest whole dollar amount.)

COST ITEM	THIS YEARS COST
DIRECT MATERIAL
DIRECT LABOR
VARIABLE OVERHEAD
FIXED OVER HEAD
TOTAL COST

Determine the costs per unit for last year and for this year. (Round your answers to 2 decimal places.)

	COST PER UNIT
LAST YEAR
THIS YEAR