The Malt 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 Malt Bread Company: (Click the icon to view the budget data.) The Malt Bread Company provides the following additional data for the year ended December 31, 2017: (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 Malt Bread budgeting?) The denominator level is 74,000 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 Incurred Rudanted Data Flexible Rudent Allocated Overhoad The Malt 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 Malt Bread Company: (Click the icon to view the budget data.) The Malt Bread Company provides the following additional data for the year ended December 31, 2017: (Click the icon to view the additional data.) Read the requirements. Actual Costs Flexible Incurred Budgeted Rate Budget Variable MOH $ 547,300 $ 421,000 $ Allocated Overhead 480,000 $ 480,000 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 Analysis Spending Variance Efficiency Variance Production-Volume Variance Variable MOH 968300 U 901000 F 960000 N Data table Planned (budgeted) output 3,700,000 baguettes Actual production Direct manufacturing labor Actual variable manufacturing overhead 2,400,000 baguettes 42,100 hours $547,300 Print Done - Data table Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Print Done -