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Maine Office Products produces three different paper products at its Vaasa lumber plant Supreme, Deluxe, and Regular. Each product has its own dedicated production line
Maine Office Products 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 2020 are $160 million ($24 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 2020 are as follows: (Click the icon to view the data.) Read the requirements Data table Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2020 Begin by determining the formula needed to calculate the total manufacturing cost per unit Direct material costs Direct manufacturing labor costs Direct manufacturing labor costs Direct material costs Manufacturing overhead costs Total manufacturing costs Units produced ages Units sold Total manufacturing cost per unit Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Units produced Supreme Deluxe Regular $ 86 S 50 $ 64 17 $ 24 $ 39 2729 $ 41 $ 12 $ 37 100 120 140 Print Done Clear all Check
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