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The Sourdcugh Breas Company bakes boguetes for distribution to upscale grocery storss. The company has two direct-cost categories. direct materials and direct mandacturng labor. Variable
The Sourdcugh Breas Company bakes boguetes for distribution to upscale grocery storss. The company has two direct-cost categories. direct materials and direct mandacturng labor. Variable manulacturng overhead is alocaled to products on the basis of standard direct manufacturing labor-hourn. Following is some budget daa for the Scurdough Bread Company: Clok the icen to viow the budget dala) The Sourdough Bread Company provides the folowing additional data fer the year ended December 31,2020 (Click the icoo to vew the additional diata) Read the recurements: The denominator leved is hours Data table Data table Requirements 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?) 2. Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them
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