The Brown Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2017, Brown adopted the standards in the data graphs attached for its manufacturing costs.

The denominator level for total manufacturing overhead per month in 2017 is 43,000 direct manufacturing labor-hours. Brown's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production 17,800 lb. at $4.90 per lb. 15,300 lb. 31,100 hrs. at $10.75 per hr. $650,000 7,400 output units