Question: The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2012, fixed manufacturing overhead was

The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2012, fixed manufacturing overhead was budgeted at $4.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $272,000.

Required
1. Prepare a variance analysis of fixed manufacturing overhead cost. Use Exhibit 8-4 as a guide.
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.

Exhibit 8-4:

The French Bread Company also allocates fixed manufacturing overhead to products on

Step by Step Solution

★★★★★

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

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...

The Whole Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor- hours. For 2012, fixed manufacturing overhead was budgeted at $...

The Sourdough Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2017, fixed manufacturing overhead was budgeted at...

The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2017, fixed manufacturing overhead was budgeted at...

The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2014, fixed manufacturing overhead was budgeted at...

Baking Bad also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2020, fixed manufacturing overhead was budgeted at 4.00 per direct...

help The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2014, fixed manufacturing overhead was budgeted at...

French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labour-hours. For 2015, fixed manufacturing overhead was budgeted at $4.00...

The Boston Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two? direct-cost categories: direct materials and direct manufacturing labor. The Boston Bread...

Please help LDthQF'I U'm 'v'eloroo Company manufactures a single component. The standards for each finished product are as follows: Direct materials: 5 lb. at 55 per kg. Direct manufacturing labour:...

The lifetime (in years) of a manufactured product is Y = 5X0.7, where X has an exponential distribution with mean 1. Find the cdf and pdf of Y.

A 2. Using cos(a + b) = cos(a) cos(b) sin(a) sin(b) and cos(a b) = cos(a) cos(b) + sin(a) sin(b) show, for n # m, that: sin sin dz = 0 P.

Discuss the evolution of POM.

This problem involves data from Problem 15 in Chapter 5. Treat LN_BRNTL as the dependent variable and dosage level of toluene (PPM_TOLU) as a categorical predictor (four levels). The experimenter...

Lets be more practical. DCF is not the gospel. Managers should not become so enchanted with DCF that strategic considerations are overlooked. Do you agree? Explain.

All overhead costs are relevant in NPV analysis. Do you agree? Explain.

Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place. Year A B C 1 $ 2,500 $ 3,500 $ 0 2...

QUESTION 6 Which Gartenberg standard is the most difficult to quantify? O A. Nature and Quality of Services O B. Competitive Fees and Expenses O C. Economies of Scale O D. Fall-Out Benefits

3. Simms Enterprises is attempting to evaluate the possibility of investing $85,000 in a machine having a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown...