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

Direct materials		$ 320,000
Direct labor		267,000
Variable overhead		231,000

Production was 180,000 units. Fixed manufacturing overhead was $792,000.

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. Required A

Cost Item	This Year's Cost
Direct materials
Direct Labor
Variable Overhead
Fixed Overhead
Total Cost	$