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The Brown Bread Company bakers baguettes for distribution to upscale grocery stores. The company has two direct-cost categories direct materials and direct manufacturing labor Variabile
The Brown Bread Company bakers baguettes for distribution to upscale grocery stores. The company has two direct-cost categories direct materials and direct manufacturing labor Variabile manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Brown Bread Company (Click the icon to view the budget data) CIRO Requirement 1. What is the denominator sever used for alocating vanatie manufacturing overhead (that is for ho The denominator it is 72.000 hours Requirement 2. Prepare a variance analysis of variable manufacturing overhead Begin by calculating the lodowing amounts for the variable overhead that will be used to calculate the variances The Brown Bread Company provides the following additional data for the year ended December 31,2017 Click the icon to view the additional data) Data table Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,000,000 bag 3300.000 bagels 60,500 hours $834,000 Actual input Actual Costs Flexible incurred Variabie MOH 634300 Budgeted Rate 229000 Budget Allocated Overhead 229900 Print Done ?( ev Data table Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Print Done -X wer Requirements X 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Brown 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
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