Flexible Budgets, Overhead Cost Variances, and Management Control Variable Manufacturing Overhead Variance Analysis The Sourdough 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 Sourdough Bread Company: Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2020: \begin{tabular}{|l|c|} \hline Planned (budgeted) output & 3,100,000 baguettes \\ \hline Actual production & 2,600,000 baguettes \\ \hline Direct manufacturing labor & 46,800 hours \\ \hline Actual variable manufacturing overhead & $617,760 \\ \hline \end{tabular} Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?) 2 Prepare a variance analysis of variable manufacturing overhead. a. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfayorable) when describing the variances. 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) 2. Prepare a variance analysis of variable manufacturing overhead. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.)