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 X Data table Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour X Data table - X Requirements Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3.100,000 baguettes 2,600,000 baguettes 46,800 hours 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 $617.760