Techno

Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories:

In response to competitive pressures at the end of

2016,

Techno

Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for

2016

and

2017

is as follows:

	2016	2017
Setup, production-order, and materials-handling costs per batch	$8,700	$7,900
Total manufacturing-operations cost per machine-hour	$62	$52
Cost per engineering change	$27,000	$15,625

The management of

Techno

Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by

20%.

Actual results for

2016

and

2017

for HJ6 are:

	Actual Results for 2016	Actual Results for 2017
Units of HJ6 produced	4,500	5,000
Direct material cost per unit of HJ6	$2,000	$1,600
Total number of batches required to produce HJ6	60	70
Total machine-hours required to produce HJ6	28,800	25,500
Number of engineering changes made	10	8

Requirements 1 and 2. Calculate the manufacturing cost per unit of HJ6 in

2016,

then in

2017.

(Round your answers to the nearest whole dollar.)

	2016
	cost per unit
Direct materials
Batch-level costs
Mfg. operations costs
Engineering change costs
Total