Requirement $2.$ Suppose that, in August $2020,$ production was $150$ million units of Supreme $170$ million units of Deluxe, and $200$ million units of Regular. Why might the July $2020$ information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August $2020?$

During July $2020,$ the company incurred $$160$ million of manufacturing overhead costs, which includes a cost component that with changes in monthly production volume. This amount, which been allocated to the total manufacturing costs of producing each product, $$ the total manufacturing cost per unit amounts as calculated in requirement $1.$