Problem one.

	Supreme	Deluxe	Regular
Total Manufacturing Cost	140	161	144
Units produced	50	100	80
Manufacturing cost per unit	2.8	1.61	1.8

Suppose that in August 2013, production was 90 million units of Supreme 140 million units of Deluxe and 160 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? During July 2013, the company incurred S190 million of manufacturing overhead costs, which includes a cost component that with changes in monthly production volume This amount, which been allocated to the total manufacturing costs of producing each product the total manufacturing cost per unit amounts as calculated