I am stuck on #3 of E8-23 of Horngren's Cost Accounting. I was able to figure #1 and 2 but when I put in what should be the spending balance etc with unfavorable since what is budged was less than what the actual cost was is less, I get a response that I am wrong. Is the efficiency variance N (never a variance)?

Now complete the 4 variance analysis using the amounts you calculated above.

Spending Variance 149760 U Efficiency Variance 52000 F Production Variance 97760 U.

Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2017: Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,100,000 baguettes 2,600,000 baguettes 46,800 hours $617,760 Required 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. Use Exhibit 8-4 (page 304) for reference. 3. Discuss the variances you have calculated and give possible explanations for them