Computing and interpreting manufacturing unit costs. 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 2007 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
line. Summary data (in millions) for July 2007 are as follows: