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The Brown Manufacturing​ Company's costing system has two​ direct-cost categories: direct materials and direct manufacturing labor....

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

2014 Brown adopted the following standards for its manufacturing​ costs: 

Direct materials

3 lbs. at $4 per lb.

$12.00

Direct manufacturing labor

4 hrs. at $20 per hr.

80.00

Manufacturing overhead:

Variable

$6 per DLH

24.00

Fixed

$7 per DLH

28.00

Standard manufacturing cost per output unit

$144.00

The denominator level for total manufacturing overhead per month in

2014 is 37,000 direct manufacturing​ labor-hours

Brown​'s flexible budget for January 2014

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

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Direct materials purchased

26,300 lb. at $3.80 per lb.

Direct materials used

23,300 lb.

Direct manufacturing labor

28,400 hrs. at $19.60 per hr.

Total actual manufacturing overhead (variable and fixed)

$500,000

Actual production

7,600 output units

Finally, complete the table for fixed overhead.

Same Budgeted Lump

Actual Costs

Sum Regardless

Flexible

Allocated

Incurred

of Output Level

Budget

Overhead

Fixed Manuf. OH

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