The Brown 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 Brown Bread Company: (Click the icon to view the budget data.) The Brown 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 Brown 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. Data table Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,600,000 baguettes 2,800,000 baguettes 50,600 hours $678,040 Requirements 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