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Minnesota Office Products (MOP) produces three different paper products at its Vassa lumber plant: Supreme, Deluxe and Regular. Each product has its own dedicated production
Minnesota Office Products (MOP) produces three different paper products at its Vassa lumber plant: Supreme, Deluxe and Regular. Each product has its own dedicated production line at the plant. It currently uses a three-part classification for its manufacturing costs: DM, DL, and OH. Total OH costs for the plant were $150 MM ($45 MM of which are fixed costs). This amount is allocated to each product line on the basis of DL costs. Summary data (000's) for the month of July are as follows: Supreme Deluxe Regular DM costs DL costs Mfg OH costs $89,000 $16,000 $48,000 $57,000 $26,000 $78,000 $60,000 $ 8.000 $24,000 Units produced 125,000 150,000 140,000 1. Compute the per unit manufacturing cost for each product in July. 2. In August, production is expected to be as follows: Supreme 150,000 Deluxe 190,000 Regular 220,000 Units produced What are the manufacturing costs in August
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