\begin{tabular}{l|l} The Quick Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct & The Quick Bread Company provides the following manufacturing labor. Variable manufacturing overhead is adlitional data for the year ended December 31, allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Quick Bread Company: \\ (Click the icon to view the budget data.) \end{tabular} Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour \begin{tabular}{|lc} Planned (budgeted) output & 3,200,000 baguettes \\ Actual production & 2,500,000 baguettes \\ Direct manufacturing labor & 44,600 hours \\ Actual variable manufacturing overhead & $597,640 \end{tabular} 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Quick Bread budgeting?) 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them