Question: French Bread Company also allocates fixed manufacturing overhead to products

French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labourhours. For 2013, fixed manufacturing overhead was budgeted at $4.00 per direct manufacturing labour hour. Actual fixed manufacturing overhead incurred during the year was $272,000.
REQUIRED
1. Prepare a variance analysis of fixed manufacturing overhead costs.
2. Is fixed overhead underallocated or overallocated? By how much?
3. Comment on your results. Discuss the various variances and explain what may be driving them.


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  • CreatedJuly 31, 2015
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