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  • Company STU produces three products: A, B, and C. Product A requires 5 units of direct materials and 4 hours of direct labor, Product B requires 6 units of direct materials and 5 hours of direct labor, and Product C requires 7 units of direct materials and 6 hours of direct labor.
  • The unit costs for direct materials are $10 for Product A, $12 for Product B, and $15 for Product C, while direct labor costs are $20 per hour.
  • The company incurred $10,000 in manufacturing overhead costs during the period.

• Requirements:

  • Calculate the total manufacturing cost for each product.
  • Determine the total cost of goods manufactured for all three products combined.
  • Analyze the cost distribution among the products.
  • Provide recommendations for cost control strategies.

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