Wagner Manufacturing estimated its product costs and volume of production for 2012 by quarter as follows.

Wagner Company sells a souvenir item at various resorts across the country. Its management uses the product's estimated quarterly cost to determine the selling price of its product. The company expects a large variance in demand for the product between quarters due to its seasonal nature. The company does not expect overhead costs, which are predominately fixed, to vary significantly as to production volume or with amounts for previous years. Prices are established by using a cost-plus pricing strategy. The company finds variations in short-term unit cost confusing to use. Unit cost variations complicate pricing decisions and many other decisions for which cost is a consideration.
Required
a. Based on estimated total production cost, determine the expected quarterly cost per unit for Wagner's product.
b. How could overhead costs be estimated each quarter to solve the company's unit cost problem? Calculate the unit cost per quarter based on your recommendation.

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First Quarter Third Quarter Fourth Quarter Second Quarter Direct raw materials Direct labor Manufacturing overhead Total production costs Expected units produced $ 40,000 24,000 $ 80,000 48,000 $ 60,000 36,000 S120,000 92,000 124,000 80,000 160,000 $188,000 12,000 $208,000 16,000 $188,000 $352,000