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. (Click the icon to view the budget data for 2017.) (Click the icon to view the additional data for 2017.) The Boston Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2017, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $290,000. Read the requirements. Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Fixed MOH Same Budgeted Lump Sum Actual Costs Incurred Regardless of Output Level Flexible Budget Allocated Overhead Requirements - Data table .... Data table 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour Planned (budgeted) output Actual production 3,300,000 baguettes 2,300,000 baguettes 40,000 hours 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. Direct manufacturing labor use Direct manufacturing labor Actual variable manufacturing overhead $536,000 - X