Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. CB uses two direct cost categories: direct materials and direct manufacturing labour. Johnson feels that manufacturing overhead is most closely related to material usage. Therefore, CB allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted the following standards for each block: Direct materials Input 0.5 lb. @ $12/lb. Cost/Block $ 6.00 Direct manufacturing labour 1.4 hours @ $20/hour 28.00 Manufacturing overhead: Variable Fixed Standard cost per block Actual results for April 2021 were as follows: Production Direct materials purchased $6/lb. 0.5 lb. 3.00 $15/lb. 0.3 lb. 4.50 $41.50 24,000 blocks 12,000 lb. at $13/lb.