Question -
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 direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2008 are $150 million ($20 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 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 2008 are as follows:
Supreme Deluxe Regular
Direct material costs $84 $54 $62
Direct manufacturing labor costs $14 $28 $ 8
Manufacturing overhead costs $42 $84 $24
Units produced 80 120 100
Compute the manufacturing cost per unit for each product produced in July 2008.