The Quick Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. The Quick Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2020, fixed manufacturing overhead was budgeted at $4.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $289,000. The following is some budget data for the Quick Bread Company for 2020 and additional infomation for the year ended Decmeber 31, 2020: (Click the icon to view the budget data.) 2 (Click the icon to view the additional data.) Read the requirements Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Same Budgeted Lump Sum Actual Costs Regardless of Flexible Allocated Incurred Output Level Budget Overhead Fixed MOH Data table Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour Print Done - Data table Planned (budgeted) output 3,200,000 baguettes Actual production 2,300,000 baguettes Direct manufacturing labor 40,400 hours Actual variable manufacturing overhead $553,480 Print Done Requirements 1. Prepare a variance analysis of fixed manufacturing overhead cost. 2. Is fixed overhead underallocated or overallocated? By what amount? 3. Comment on your results. Discuss the variances and explain what may be driving them. Print Done