The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials Direct labor Variable overhead $ 350,000 267,000 238,000 Production was 160,000 units. Fixed manufacturing overhead was $837,000. 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. Varlable manufacturing overhead per unit is expected to remain the same. Required: a. Prepare a cost estimate for a volume level of 128,000 units of product this year. b. Determine the costs per unit for last year and for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a cost estimate for a volume level of 128,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year's Cost Direct materials Direct labor Variable overhead Fixed overhead Total costs

The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials Direct labor Variable overhead $ 350,000 267,000 238,000 Production was 160,000 units. Fixed manufacturing overhead was $837,000. 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. Varlable manufacturing overhead per unit is expected to remain the same. Required: a. Prepare a cost estimate for a volume level of 128,000 units of product this year. b. Determine the costs per unit for last year and for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a cost estimate for a volume level of 128,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year's Cost Direct materials Direct labor Variable overhead Fixed overhead Total costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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