The accounting records for Miller Fixtures report the following production costs for the past year:

Direct materials . . . . . . . . . . . . . . . . . . . . . $210,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . 175,000

Variable overhead . . . . . . . . . . . . . . . . . . . 154,000

Production was 210,000 units. Fixed manufacturing overhead was $240,000. 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 220,000 units of product this year.

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