The

Burnett

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,

Burnett

adopted the following standards for its manufacturing costs:

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.

Requirement 1. Prepare a schedule of total standard manufacturing costs for the

8,000

output units in January

2017.

Direct materials
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total

Input

Cost per Output Unit

Direct materials

4 lb. at $7 per lb.

$28.00

Direct manufacturing labor

6 hrs. at $11 per hr.

66.00

Variable manufacturing overhead

$7 per DLH

42.00

Fixed manufacturing overhead

$8 per DLH

48.00

Standard manufacturing cost per output unit

$184.00

The denominator level for total manufacturing overhead per month in

2017

is

44,000

direct manufacturing labor-hours.

Burnett's

budget for January

2017

was based on this denominator level. The records for January indicated the following:

Direct materials purchased	33,000 lb. at $7.20 per lb.
Direct materials used	31,500 lb.
Direct manufacturing labor	49,500 hrs. at $10.25 per hr.
Total actual manufacturing overhead (variable and fixed)	$675,000
Actual production	8,000 output units