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 $31,2020$:

$($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 is Boston Bread budgeting?$)$

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.