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.) 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. Requirement 1. What is the denominator level used for allocating variable manuf Bread budgeting?) The denominator level is 66,000 hours. Print Print Done Done 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 Incurred Flexible Budget Allocated Overhead Budgeted Rate Variable MOH able Data Table 3,300,000 baguettes 3,000,000 baguettes Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 0.02 hours per baguette 54,000 hours Direct manufacturing labor use Variable manufacturing overhead $ 10.00 per direct manufacturing labor-hour $723,600 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.) 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. Requirement 1. What is the denominator level used for allocating variable manuf Bread budgeting?) The denominator level is 66,000 hours. Print Print Done Done 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 Incurred Flexible Budget Allocated Overhead Budgeted Rate Variable MOH able Data Table 3,300,000 baguettes 3,000,000 baguettes Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 0.02 hours per baguette 54,000 hours Direct manufacturing labor use Variable manufacturing overhead $ 10.00 per direct manufacturing labor-hour $723,600
