West Partners manufactures metal fixtures. Each fitting requires both steel and an alloy that can withstand extreme temperatures. The following data apply to the production of the fittings for year 1 : The machine depreciation and other overhead costs are fixed and are based on production of 111,000 units annually. Plant capacity is 131,000 units annually. All other overhead costs are variable. The following are forecast for year 2. A wage increase of 6 percent for both direct and indirect labor, which was negotiated recently, will go into effect. Steel prices are expected to decrease by 5 percent while alloy prices are expected to increase by 10 percent. Machine depreciation costs are expected to increase by 4 percent. All other unit overhead costs are expected to remain constant. West Partners expects to sell 95,000 units in year 2 . The current inventory of fittings is 9,100 units. Management is forecasting much higher sales volume in year 3 , so wants to have 12,100 units on hand by the end of year 2 . Steel and alloy inventories will not change. Sales are approximately uniform over the year. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year