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

Direct materials	$	390,000
Direct labor		261,000
Variable overhead		235,000

Production was 170,000 units. Fixed manufacturing overhead was $774,000.

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 136,000 units of product this year. b. Determine the costs per unit for last year and for this year.