Maryland 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 $140 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

2017 are as follows:

	Supreme	Deluxe	Regular
Direct material costs	$82	$58	$63
Direct manufacturing labor costs	$17	$24	$39
Manufacturing overhead costs	$40	$82	$18
Units produced	100	120	110

Requirement 1. Compute the manufacturing cost per unit for each product produced in July

2017.

Begin by determining the formula needed to calculate the total manufacturing cost per unit.

=

Total manufacturing cost per unit