Data Table A Requirements Supreme Deluxe Regular Direct material costs 82 $ 52 $ 62 1. Compute the manufacturing cost per unit for each product produced in July 2017. 2. Suppose that, in August 2017, production was 110 million units of Supreme, 170 million units of Deluxe, and 200 million units of Regular. Why might the July 2017 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2017? A A A 14 $ 28 $ Direct manufacturing labor costs Manufacturing overhead costs Units produced 8 41 $ 83 $ 46 70 130 120 Print Done Print Done UTILS on Deluxe, and zou mon UNIS ON Reguial. wny mign the jury ZUTT miommation on manu Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $170 million ($20 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2017 are as follows: B (Click the icon to view the data.) Read the requirements. Using the formula you determined above, calculate the company's total manufacturing cost per unit for each type of product produced in July 2017. (Round your answers to the nearest cent.) Supreme Deluxe Regular Total manufacturing cost per unit produced in July Requirement 2. Suppose that, in August 2017, production was 110 million units of Supreme, 170 million units of Deluxe, and 200 million units of Regular. Why might the July 2017 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2017? During July 2017, the company incurred $170 million of manufacturing overhead costs, which includes a $20 million fixed cost component that will fluctuate with changes in monthly production volume. This amount, which has been allocated to the total manufacturing costs of producing each product, has no effect on the total manufacturing cost per unit amounts as calculated in requirement 1. Given the production volume increase in August 2017, using the total manufacturing cost per unit amounts calculated for July 2017 will result in an underestimation of total manufacturing costs for August