Problem 1.Minnesota Office Products (MOP) produces three different paper pro Jumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated p at the plant. It currently uses the following three-part classification for its direct materials, direct manufacturing labor, and manufacturing overhead costs manufacturing overhead costs of the plant in July 2014 are $150 million ($15 lion of fixed). This total amount is allocated to each product line on the basis of the direct man labor costs of each line. Summary data (in millions) for July 2014 are as follows Direct Material Costs Supreme $85 Direct Manufacturing labor Costs Manufacturing overhead Costs $14 $47 Unit Price 125 Deluxe $53 $24 $77 150 Regular 557 57 $22 140 me 1. Compute the manufacturing cost per unit for each product produced in July 2014. 2. Suppose that, in August 2014, production was 150 million units of Supreme, 190 million of Deluxe, and 220 million units of Regular. Why might the July 2014 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2014?