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Problem 8-33 (book/static) Question Help The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials
Problem 8-33 (book/static) Question Help The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labour. The Sourdough Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labour-hours. The following is some budget data for the Sourdough Bread Company for 2017 and additional information for the year ended December 31, 2017: Budget data Additional data X Direct manufacturing labour use 0.02 hours per baguette Planned (budgeted) output 3, 100,000 baguettes Fixed manufacturing overhead $3.00 per direct manufacturing Actual production 2,600,000 baguettes labour-hour Budgeted direct manufacturing labour 62,000 hours Actual direct manufacturing labour 46,800 hours Required X Actual fixed manufacturing overhead $294,000 Print Done 1. Prepare a variance analysis of fixed manufacturing overhead cost. 2. Is fixed overhead underallocated or overallocated? By what amount? 3. Comment on your results. Discuss the variances and explain what may be driving them. ? Print Done
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