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

Direct materials	$	320,000
Direct labor		269,000
Variable overhead		234,000

Production was 180,000 units. Fixed manufacturing overhead was $739,000.

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. b. Determine the costs per unit for last year and for this year.

Required A Required B Prepare a cost estimate for a volume level of 144,000 units of product this year. (Do not round intermediate calculations.) \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Cost Item } & This Year's Cost \\ \hline Direct materials & \\ \hline Direct labor & \\ \hline Variable overhead & \\ \hline Fixed overhead & \\ \hline Total costs & \\ \hline \end{tabular} Required B >