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: E: (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 requirements. Data Table Verhead? (That is, for how many direct manufacturing labor-hours is Roti Data Table Planned (budgeted) output 2,800,000 baguettes Actual production 2,700,000 baguettes Direct manufacturing labor 48,400 hours Actual variable manufacturing overhead $672,760 Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour i Requirements Print Done 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Roti Bread budgeting?) 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them