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

Direct materials	$	320,000
Direct labor		266,000
Variable overhead		239,000

Production was 130,000 units. Fixed manufacturing overhead was $744,000.

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 104,000 units of product this year. b. Determine the costs per unit for last year and for this year.

Prepare a cost estimate for a volume level of 104,000 units of product this year. (Do not round intermediate calculations.)

Cost Item	This Year's Cost
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total costs

Determine the costs per unit for last year and for this year. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Cost per Unit
Last year
This year