The Following Manufacturing Costs Were Incurred by the Miracle Mile

The following manufacturing costs were incurred by the Miracle Mile Company in 2015:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 225,000 \\\hline \text { Direct labor } & 350,000 \\\hline \text { Manufacturing overhead } & 470,000 \\\hline\end{array}$$
These costs were incurred to produce 50,000 units of product.Variable manufacturing overhead was 70% of the direct materials cost.In 2016,the direct material and variable overhead costs per unit will increase by 12%,but the direct labor costs per unit are not expected to change.Fixed manufacturing costs are expected to increase by 8%.
Required:
(a. )Prepare a cost estimate for an activity level of 40,000 units of product in 2016.
(b. )Determine the total product costs per unit for 2015 and 2016.