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Requirement 2 . Suppose that, in August 2 0 2 0 , production was 1 1 0 million units of Supreme, 1 5 0 million
Requirement Suppose that, in August production was million units of Supreme, million units of Deluxe, and million units of Regular. Why might the July information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August During July the company incurred $ million of manufacturing overhead costs, which includes a $ million fixed cost component that will fluctuate with changes in monthly production volume. This amount, which has been allocated to the total manufacturing costs of producing each product, affects the total manufacturing cost per unit amounts as calculated in requirement
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