Last theoretical question only.

The Whole Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: The Whole Bread Comr 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 Whole Bread Company: (Click the icon to view the budget data.) Read the requirements. Data table Requirement 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Whole 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. Data table Requirement 3. Discuss the variances you have calculated and give possible explanations for them. Thespendingvarianceisexplanationcouldbea(n)becausevariablemanufacturingoverheadwasinenergyratesrelativetotherateperstandardlabor-hourassumedintheflexiblebudget. the budget. This could occur because of morale in the company, which could result from an increase in wages or an improvement in the compensation scheme. The flexible-budget variance of 168720 is favorable because the efficiency variance was to compensate for the spending variance