Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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:

Direct manufacturing labor use

0.02

hours per baguette

Variable manufacturing overhead

$10.00

per direct manufacturing labor-hour

The Rye Bread Company provides the following additional data for the year ended December 31, 2014:

Planned (budgeted) output

3,700,000

baguettes

Actual production

2,500,000

baguettes

Direct manufacturing labor

44,700

hours

Actual variable manufacturing overhead

$594,510

Requirments

1.

What is the denominator level used for allocating variable manufacturingoverhead? (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.

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lab Manual To Accompany Auditing IT Infrastructure For Compliance Version 2

Authors: Martin Weiss

2nd Edition

1284059189, 978-1284059182

More Books

Students also viewed these Accounting questions

Question

friendliness and sincerity;

Answered: 1 week ago