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The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two directcost categories: direct materials and direct manufacturing labor. The
The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two directcost categories: direct materials and direct manufacturing labor. The Sourdough Bread Company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. The following is some budget data for the Sourdough Bread Company for 2020. 1. Prepare a variance analysis of fixed manufacturing overhead cost. Use the exhibit that shows the variance analysis of fixed manufacturing overhead cost as a guide. a. For variances with a zero amount, leave the box empty; do not select a label or enter a zero. b. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) 2. Is fixed overhead underallocated or overallocated? By what amount? a. Use the ABS function when calculating the underallocated or overallocated amount. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Fixed manufacturing overhead is
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