Managerial Spring 2021 Section 10 malcolm pickering & 04/02/21 11:40 PM Homework: Chapter 8 Homework Save Score: 0.14 of 3 pts 6 of 36 (18 complete) HW Score: 40.82%, 17.14 of 42 pts E8-23 (similar to) Question Help The Boston 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 Boston Bread Company (Click the icon to view the budget data.) The Boston Bread Company provides the following additional data for the year ended December 31, 2017: (Click the icon to view the additional data.) Read the requirements Requirement 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours Boston Bread budgeting?) The denominator level is 72,000 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 Actual Input Actual Costs Data Table - X Flexible Budget 140000 Direct manufacturing labor use Variable manufacturing overhead Incurred 580000 Allocated Overhead 6851001 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Budgeted Rate 720000 Variable MOH Print Done Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,600,000 baguettes 2,900,000 baguettes 52,700 hours $685,100 Print Done