Michael Roberts is a cost accountant and business analyst for Darby Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct manufacturing labor. Roberts feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used.

At the beginning of 2014, DDC budgeted annual production of 410,000 doorknobs and adopted the fol-lowing standards for each doorknob:

	Input	Cost/Doorknob
Direct Materials	0.3 lb. @ $9/lb.	$2.70
Direct Manufacturing labor	1.2 hrs @ $16/hr.	$19.20
Manufacturing overhead:
Standard	$4/lb. x 03. lb.	$1.20
Fixed	$14/lb. x 03. lb.	$4.20
Standard cost per doorknob		$27.30

Actual results for April 2014 were as follows: Production