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Manitoba Office Products (MOP) produces three different paper products at its Vernon lumber plant-Supreme, Deluxe, and Regular. Each product has its own dedicated production line
Manitoba Office Products (MOP) produces three different paper products at its Vernon lumber plant-Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. MOP currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labour, and indirect manufacturing costs. Total indirect manufacturing costs of the plant in May 2018 are $150 million ($25 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labour costs of each line. Summary data (in millions) for May 2018 are provided in the accompanying table EEB (Click the icon to view the summary data.) Required Requirement 1. Use the following table to compute the total manufacturing cost per kilogram and the total variable manufacturing cost per kilogram. (Round your answers to the nearest cent.) Deluxe Regular 50 $ 30 $ 86 $ 166 S Supreme 80 $ 11 S 42 $ 133 S Direct material costs Direct manufacturing labour costs Indirect manufacturing costs Total manufacturing costs Mfg. fixed cost allocation Variable costs Kilograms produced Total manufacturing cost per kg Variable mfg. cost per kg 65 96 70 100 90 Summary data 1 Supreme Deluxe Regular $ 80 Direct manufacturing labour costs S 11 $ 42 70 50 65 30 S 9 86 22 90 Direct material cost Indirect manufacturing costs Kilograms produced 100 Print Done
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