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. TheBoston Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2020, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $295,000.

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. The Boston Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor hours. For 2020, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $295.000 The following is some budget data for the Boston Bread Company for 2020 and additional infomation for the year ended Decmeber 31, 2020: (Click the icon to view the budget data.) (Click the icon to view the additional data.) Read the requirements Data table Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost Begin completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead S10.00 per direct manufacturing labor-hour Same Budgeted Lump Sum Regardless of Output Level Print Actual Costs Flexible Done Allocated Overhead Incurred Budget Fixed MOH X Data table - X Requirements 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. Planned (budgeted) output 3,400,000 baguettes Actual production 3,300,000 baguettes Direct manufacturing labor 60,600 hours Actual variable manufacturing overhead S781,740 Etel wer