The French Bread Company bakes baguettes for distribution to upscale grocery The French Bread Company provides the following additional data for the year stores. The company has two direct-cost categories: direct materials and direct ended December 31, 2017: manufacturing labor. Variable manufacturing overhead is allocated to products (Click the icon to view the additional data.) on the basis of standard direct manufacturing labor-hours. Following is some budget data for the French Bread Company Read the requirements : (Click the icon to view the budget data.) Requirement 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is French 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. Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overhead Variable MOH Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Efficiency Production-Volume Spending Variance Analysis Variance Variance Variable MOH Requirement 3. Discuss the variances you have calculated and give possible explanations for them. The spending variance is explanation could be an) because variable manufacturing overhead was % than planned. A possible in energy rates relative to the rate per standard labor-hour assumed in the flexible budget. The efficiency variance is because the actual number of direct manufacturing labor-hours required was than the number of hours in the flexible budget. Labor was efficient in producing the baguettes than management had anticipated in the budget. This could occur because of morale in the company, which could result from an increase in wages or an improvement in the compensation scheme IS because the efficiency variance was to The flexible-budget variance of compensate for the spending variance. anded December 21 2017: al data.) irect-cost categories direct materials and direct anufact manufad Data Table ad Com udget de nominat ny direct Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,000,000 baguettes 3,100,000 baguettes 56,700 hours $754, 110 ance an ng amoy Print Done A Data Table - X Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Print Done