4. The Boston Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Boston Bread Company: 1(Click the icon to view the budget data.) The Boston Bread Company provides the following additional data for the year ended December 31, 2020: 2(Click the icon to view the additional data.) Read the requirements Requirement 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Boston Bread budgeting?) The denominator level is hours. Requirement 2. Prepare a variance analysis of variable manufacturing overhead. Begin by calculating the following amounts for the variable overhead that will be used to calculate the variances. Variable MOH Actual Input Actual Costs x Incurred Budgeted Rate Flexible Budget Allocated Overhead Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Analysis Variable MOH Spending Variance Efficiency Variance (1) (2) Production-Volume Variance (3) Requirement 3. Discuss the variances you have calculated and give possible explanations for them. The spending variance is (4) because variable manufacturing overhead was % (5) than planned. A possible explanation could be a(n) (6) in energy rates relative to the rate per standard labor-hour assumed in the flexible budget. The efficiency variance is (7). (8). because the actual number of direct manufacturing labor-hours required was than the number of hours in the flexible budget. Labor was (9). efficient in producing the baguettes morale in the company, which could than management had anticipated in the budget. This could occur because of (10)- result from an increase in wages or an improvement in the compensation scheme. The flexible-budget variance of compensate for the spending variance. is (11) because the efficiency variance was (12) 1: Data Table Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour 2: Data Table to