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Please answer 1ab HELP ASAP please 1. (10 points) MassBay Office Products (MOP) produces three different paper products at its Quincy plant: Supreme, Deluxe, and
Please answer 1ab HELP ASAP please
1. (10 points) MassBay Office Products (MOP) produces three different paper products at its Quincy plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overheads costs. Total manufacturing overheads of the plant in February 2021 are $200 million ($20 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 February 2021 are as follows: Supreme Deluxe Regular $89 $57 $60 $16 $26 $64 $104 $32 125 150 140 Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Units produced (in February) $8 (Question 1 continued) a. Compute the total manufacturing cost per unit for each product produced in February 2021. (Question 1 continued) b. Suppose that in March 2021, production was 150 million units of Supreme, 190 million units of Deluxe, and 220 million units of Regular. Why might the February 2021 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in March 2021Step by Step Solution
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