The Whole Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. The Whole 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 Whole Bread Company for 2017 and additional infomation for the year ended Decmeber 31, 2017:

Budget data

Direct manufacturing labor use	0.02	hours per baguette
Fixed manufacturing overhead	$5.00	per direct manufacturing
		labor-hour

Additional data

Planned (budgeted) output	2,900,000	baguettes
Actual production	2,800,000	baguettes
Budgeted direct manufacturing labor	58,000	hours
Actual direct manufacturing labor	50,900	hours
Actual fixed manufacturing overhead	$298,000

requirements

1.	Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing a table for the fixed manufacturing overhead that will be used to calculate the variances.
2.	Is fixed overhead underallocated or overallocated? By what amount?
3.	Comment on your results. Discuss the variances and explain what may be driving them.