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Variable manufacturing overhead per unit

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Reference no: EM13876773

The accounting records for Frankie's Fixtures report the following production costs for the past year: 

Direct materials . . . . . . . . . . . . . . . . . . . . . $420,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . 350,000
Variable overhead . . . . . . . . . . . . . . . . . . . 308,000

Production was 210,000 units. Fixed manufacturing overhead was $480,000. 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.

Reference no: EM13876773

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