Michigan 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 MOF 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 2013 ($27 million of which are foced). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in milions) for July 2013 are: Click the icon to view the data) Requirements 1. Compute the manufacturing cost per unit for each product produced in July 2013 2. Suppose that in August 2013, production was 140 million units of Supreme, 180 milion units of Deluxe, and 210 milion units of Regular. Why might the July 2013 information on manufacturing cost misleading when predicting total manufacturing costs in August 2013? Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2013 Begin by determining the formula needed to calculate the total manufacturing cost per unit. Total manufacturing costs Units produced Total manufacturing cost per unit Using the formula you determined above, calculate the comparvy's total manufacturing cost per unit for each type of product produced in July 2013. (Round your answers to the nearest cont.) Supreme Deluxe Regular Total manufacturing cost per unit produced in July Supreme Deluxe Regular 86 $ $ 52 68 $ Direct material costs $ 12 $ 29 19 $ $ 43 $ 84 43 $ Direct manufacturing labor costs Manufacturing overhead costs Units produced 100 140 130 Michigan 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 MOF 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 2013 ($27 million of which are foced). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in milions) for July 2013 are: Click the icon to view the data) Requirements 1. Compute the manufacturing cost per unit for each product produced in July 2013 2. Suppose that in August 2013, production was 140 million units of Supreme, 180 milion units of Deluxe, and 210 milion units of Regular. Why might the July 2013 information on manufacturing cost misleading when predicting total manufacturing costs in August 2013? Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2013 Begin by determining the formula needed to calculate the total manufacturing cost per unit. Total manufacturing costs Units produced Total manufacturing cost per unit Using the formula you determined above, calculate the comparvy's total manufacturing cost per unit for each type of product produced in July 2013. (Round your answers to the nearest cont.) Supreme Deluxe Regular Total manufacturing cost per unit produced in July Supreme Deluxe Regular 86 $ $ 52 68 $ Direct material costs $ 12 $ 29 19 $ $ 43 $ 84 43 $ Direct manufacturing labor costs Manufacturing overhead costs Units produced 100 140 130
