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 60,000 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. Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overhead Variable MOH Data table Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Print Done - Data table Planned (budgeted) output 3,000,000 baguettes Actual production 2,400,000 baguettes Direct manufacturing labor 42,300 hours Actual variable manufacturing overhead $566,820 Print Done - x Requirements 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?) 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them. Print Done