help!!

The French 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 French Bread Company: Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour The French Bread Company provides the following additional data for the year ended December 31, 2014: Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,200,000 baguettes 2,800,000 baguettes 50,400 hours $680,400 Required: 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is French Bread budgeting? 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them. 2. Prepare YST: 3. Discuss the variances you have calculated and give possible explanations for them. 3. Spending variance of $176,400 U. It is unfavorable because variable manufacturing overhead was 35 percent higher than planned. A possible explanation could be an increase in energy rates relative to the rate per standard labor-hour assumed in the flexible budget. Efficiency variance of $56,000 F. It is favorable because the actual number of direct manufacturing labor-hours required was lower than the number of hours in the flexible budget. Labor was more efficient in producing the baguettes than management had anticipated in the budget. This could occur because of improved morale in the company, which could result from an increase in wages or an improvement in the compensation scheme. Flexible-budget variance of $120,400 U. It is unfavorable because the favorable efficiency variance was not large enough to compensate for the large unfavorable spending variance. 1. Denominator level = 2.e Actual Results Flexible Budget Amountse t a e 1. Output units (baguettes) 2. Direct manufacturing labor-hours 3. Labor-hours per output unit 4. Variable manuf. overhead (MOH) costse 5. Variable MOH per labor-hour 6. Variable MOH per output unite e G Variable Manufacturing Overhead Variance Analysis for French Bread Company for 2014: Actual Costs Incurred Actual Input Qty. X Actual Rate (1) Flexible Budget: Allocated: Budgeted Input Qty. Budgeted Input Qty. Allowed for Allowed for Actual Output Actual Output x Budgeted Rate x Budgeted Rate Actual Input Qty. * Budgeted Rate (2) (3) e e Spending variance Efficiency variance Never a variance- e e e Flexible Budget variance Never a variance Underallocated variable overhead (Total variable overhead variance)