Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $150 million ($15 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 July 2017 are as follows: E (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2017. Begin by determining the formula needed to calculate the total manufacturing cost per unit. Total manufacturing costs Units produced Total manufacturing cost per unit Using the formula you determined above, calculate the company's total manufacturing cost per unit for each type of product produced in July 2017. (Round your answers to the nearest cent.) Supreme Deluxe Regular Total manufacturing cost per unit produced in July This question has not been completed.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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could you show me the process to calculate supreme, deluxe, regular cost per unit?

Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated
production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and
manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $150 million ($15 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 July 2017 are as follows:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2017.
Begin by determining the formula needed to calculate the total manufacturing cost per unit.
Total manufacturing costs
Units produced
Total manufacturing cost per unit
%D
Using the formula you determined above, calculate the company's total manufacturing cost per unit for each type of product produced in July 2017. (Round your answers
to the nearest cent
Supreme
Deluxe
Regular
Total manufacturing cost per unit produced in July
This question has not been completed.
?
no

1
Data Table
Supreme
Deluxe
Regular
Direct material costs
89
57
60
Direct manufacturing labor costs
16
26
8
Manufacturing overhead costs
$
48
78
24
Units produced
125
150
140
i
Requirements
1. Compute the manufacturing cost per unit for each product produced in July
2017.
2. Suppose that, in August 2017, production was 150 million units of Supreme,
190 million units of Deluxe, and 220 million units of Regular. Why might the July
2017 information on manufacturing cost per unit be misleading when predicting
total manufacturing costs in August 2017?
Print
Done
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Cost accounting is the branch of accounting that inspects the cost structure of a business. This branch deals with gathering data about the expenses incurred by the activities of the organization and assigning the cost to various products and services.

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