RossRoss DouglasDouglas is a cost accountant and business analyst for DandyDandy Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. DouglasDouglas feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. LOADING... (Click the icon to view the standards.) LOADING... (Click the icon to view the actual results for April.) Read the requirements LOADING... .

At the beginning of

20172017,

DDC budgeted annual production of

430 comma 000430,000

doorknobs and adopted the following standards for each doorknob:

	Input	Cost/Doorknob
Direct materials (brass)	0.3 lb. @ $9/lb.	$2.70
Direct manufacturing labor	1.2 hours @ $15/hour	18.00
Manufacturing overhead:
Variable	$6/lb x 0.3 lb.	1.80
Fixed	$14/lb. x 0.3 lb.	4.20
Standard cost per doorknob		$26.70

Actual results for April

20172017

were as follows:

Production	33,000	doorknobs
Direct materials purchased	12,200	lb. at $12/lb.
Direct materials used	8,000	lbs.
Direct manufacturing labor	29,500	hours for $649,000
Variable manufacturing overhead	$64,900
Fixed manufacturing overhead	$155,000

	Actual Input Qty.
		x
	Actual Costs	Budgeted Price		Flexible
	Incurred	Purchases	Usage	Budget
Direct materials

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