Harrison Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Harrison Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 70,000 output units requiring 317,000. DLH was produced during May 2014.Manufacturing overhead (MOH) costs incurred for May amounted to $315,200.The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:

Annual Manufacturing overhead Budget 2014 Per Per DLH Monthly Actual MOH Total Output Input MOH Budget Costs for May 2014 May 2014 Amount Unit Unit Variable MOH 28,000 28,000 Indirect manufacturing labor 336,000 0.50 0.10 56,000 120,000 Supplies 672.000 1.00 0.20 Fixed MOH 504.000 0.75 42,000 Supervision 0.15 41.000 0.14 59,000 39,200 Utilities 470,400 0.70 0.24 806.400 1.20 67,200 67,200 Depreciation 2,788,800 4.15 0.83 232,400 315.200 Total