The Rye 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 Rye Bread Company (Click the icon to view the budget data) The Rye 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 Rye Bread budgeting?) The denominator level is hours Data table Direct manufacturing labor use Variable manufacturing overhead Read the requirements. 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Print Done - X Data table e Planned (budgeted) output 3,800,000 baguettes Actual production 3,100,000 baguettes Direct manufacturing labor Actual variable manufacturing overhead 56,100 hours $746,130 Print Done Requirements 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Rye Bread budgeting?) 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them. Print Done