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Business, 17.09.2019 22:00 genyjoannerubiera

Minnesota office products (mop) producesthree different paper products at its vaasa lumber plant: supreme, deluxe, and regular. each product has itsown dedicated production line at the plant. it currently uses the following three-part classification for itsmanufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. totalmanufacturing overhead costs of the plant in july 2017 are $150 million ($15 million of which are fixed). thistotal 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: supreme deluxe regulardirect material costs $ 89 $ 57 $ 60direct manufacturing labor costs $ 16 $ 26 $  8manufacturing overhead costs $ 48 $ 78 $ 24units produced   125   150   140required: suppose that, in august 2017, production was 110 million units of supreme, 170 million units of deluxe, and 190 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?

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