French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing
Question:
French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labourhours. For 2013, fixed manufacturing overhead was budgeted at $4.00 per direct manufacturing labour hour. Actual fixed manufacturing overhead incurred during the year was $272,000.
REQUIRED
1. Prepare a variance analysis of fixed manufacturing overhead costs.
2. Is fixed overhead underallocated or overallocated? By how much?
3. Comment on your results. Discuss the various variances and explain what may be driving them.
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Step by Step Answer:
1 Budgeted standard direct manufacturing labour used 002 per baguette Budgeted output 3840000 baguet...View the full answer
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Related Book For 
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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