The J&J 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 2021, J&J adopted the following standards for its manufacturing costs:

Cost per Input Output Unit a Direct materials 3 pounds at $5 per pound $15 .00 - Direct manufacturing labor 5 hours at $15 per hour 75.00 - Variable manufacturing overhead: $6 per DLH 30.00 a Fixed manufacturing overhead: $8 per DLH M Standard manufacturing cost per output unit $160.00 The denominator level for total manufacturing overhead per month in 2021 is 40,000 direct manufacturing labor-hours. J&J's exible budget for January 2021 was based on this denominator level. The records for January indicated the following: - Direct materials purchased 25,000 pounds at $5.20 per pounds - Direct materials used 23,100 pounds a Direct manufacturing labor 40,100 hours at $14.60 per hour - Total manufacturing overhead (variable and xed) $600,000 - Actual production 7,800 output units