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Missouri Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production

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Missouri 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. MOP currently uses the following threepart classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2013 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 2013 are: in Click the icon to view the data.) an Requirements 1. Compute the manufacturing cost per unit for each product produced in July 2013 ww 2. Suppose that in August 2013, production was 130 million units of Supreme, 180 million units of Deluxe, and 190 million units of Regular. Why might the July 2013 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2013? Mir Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2013 lun Begin by determining the formula needed to calculate the total manufacturing cost per unit. Total manufacturing cost per unit ww Mi Inco Supreme Deluxe Regular $ 85 Direct material costs 52 $ 63 $ $ $ 17 $ 24 39 $ 48 Direct manufacturing labor costs Manufacturing overhead costs Units produced $ 80 $ 32 90 140 110

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