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  • Company STU produces three products: A, B, and C. Product A requires 7 units of direct materials and 6 hours of direct labor, Product B requires 8 units of direct materials and 7 hours of direct labor, and Product C requires 9 units of direct materials and 8 hours of direct labor.
  • The unit costs for direct materials are $18 for Product A, $22 for Product B, and $25 for Product C, while direct labor costs are $35 per hour.
  • The company incurred $15,000 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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