The accounting records for Portland Products report the following manufacturing costs for the past year:

Direct materials $ 400,000

Direct labor 260,000

Variable overhead 235,000

Production was 180,000 units. Fixed manufacturing overhead was $789,000.

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 144,000 units of product this year. (Do not round intermediate computations.)

Cost Item	This year's cost
direct Materials
Direct Labor
Variable overhead
Fixed overhead
Total Cost

b. 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