The Roti 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 Roti Bread Company: (Click the icon to view the budget data.) The Roti Bread Company provides the following additional data for the year ended December 31, 2017: E: (Click the icon to view the additional data.) Read the Data Table 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. Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Actual Input Actual Costs Flexible Allocated Overhead Incurred Budgeted Rate Budget i Data Table 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 variand 4-Variance Spending Analysis Variance Variable MOHL Efficiency Production-Volume Variance Variance INN Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,200,000 baguettes 3,200,000 baguettes 58,000 hours $759,800 Requirement 3. Discuss the variances you have calculated and give possible explanations for them. Print Done The spending variance is explanation could be a(n) 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 V morale in the company, which could result from an increase in wages or an improvement in the compensation scheme. i s because the efficiency variance was L The flexible-budget variance of L compensate for the spending variance