The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labour. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labour-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, 2017: (Click the icon to view the additional data.) Required Requirement 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labour-hours is Sourdough Bread budgeting?) The denominator level is 62,000 hours. Requirement 2. Prepare a variance analysis of variable manufacturing overhead. - X Begin by calculating the following amounts for the variable overhead that will be used to calculate the variances. Budget data Actual Input Actual Costs Flexible Allocated Direct manufacturing labour use 0.02 hours per baguette Incurred Budgeted Rate Budget Overhead Variable manufacturing overhead $ 10.00 per direct manufacturing labour-hour Variable MOH - X - X Required Additional data Done 1. What is the denominator level used for allocating variable manufacturing Planned (budgeted) output 3,100,000 baguettes overhead? (That is, for how many direct manufacturing labour-hours is Actual production 2,600,000 baguettes Sourdough Bread budgeting?) 2. Prepare a variance analysis of variable manufacturing overhead. Direct manufacturing labour 46,800 hours 3. Discuss the variances you have calculated and give possible explanations for Actual variable manufacturing overhead $617,760 them. Print Done Print Done