The Granary 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 Granary Bread Company: E (Click the icon to view the budget data.) The Granary 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 Granary Bread budgeting?) The denominator level is 70,000 hours - X 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 Actual Input Actual Costs Flexible Allocated Overhead 3,500,000 baguettes 2,500,000 baguettes Incurred Budgeted Rate Budget Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead Variable MOH 44.700 hours $621,330 Data table Print Done Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour