The Brownton Company's Ironton Plant produces precast ingots for industrial use. Carl Brown, who was recently appointed general manager of the Ironton Plant, has just been handed the plant's income statement for October 2022. The statement reports an actual loss of $1,390 compared to a budgeted profit of $15,000. Mr. Brown was shocked to see a loss for the month, particularly since sales were exactly as budgeted. He stated, "I sure hope the plant has a standard cost system in operation. If it doesn't, I won't have the slightest idea of where to start looking for the problem." The plant does use a standard cost system, with overhead applied on the basis of direct labor hours. The standard cost per ingot is as presented below: Standard Standard Standard Quantity price/rate cost Direct Materials 4.0 pounds $2.50 per pound $10.00 Direct labor 0.5 hours $9.00 per hour 4.50 Variable overhead 0.5 DL hours $3.00 per DL hour 1.50 Fixed overhead 0.5 DL hours $14.00 per DL hour 7.00 Total $23.00 Mr. Brown has determined that during the month of October the plant produced and sold 5,500 units (1,000 units less than budgeted) and incurred the following costs:

1. Purchased 15,000 pounds of materials at a cost of $3.05 per pound (total cost of $45,750).

2. Used 19,800 pounds of materials in production. (Finished goods and work in process inventories are nominal and can be ignored.)

3. Worked 3,700 direct labor-hours at a total cost of $31,450 (or $8.50 per hour)

4. Incurred total variable overhead costs for the month of $8,420.

5. Incurred total fixed overhead costs for the month of $40,500.