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The accounting records for Miller Fixtures report the following production costs for the past year: Direct Materials $ 650,000 Direct Labor 576,000 Variable Overhead 466,000

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

Direct Materials $ 650,000
Direct Labor 576,000
Variable Overhead 466,000

Production was 287,000 units. Fixed manufacturing overhead was $768,000.

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 297,000 units of product this year. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Cost item This year's cost
Direct material $
Direct labor
Variable overhead
Fixed overhead
Total costs $

(b)

Determine the costs per unit for last year and for this year. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Costs per unit
Last year $
This year $

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