The Sourdough 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 Sourdough Bread Company: (Click the icon to view the budget data.) The Sourdough Bread Company provides the following additional data for the year ended December 31, 2020: (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 Sourdough Bread budgeting?) The denominator level is hours. 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. Variable MOH Actual Input Actual Costs x Incurred Budgeted Rate Flexible Budget Allocated Overhead Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Analysis Spending Variance Efficiency Variance Production-Volume Variance Variable MOH Next