Data table

Planned $($budgeted$)$ output

$3,600,000$ baguettes

Actual production

$3,100,000$ baguettes

Direct manufacturing labor

$56,400$ hours

Actual variable manufacturing overhead $$783,960$

Requirements

Prepare a variance analysis of fixed manufacturing overhead cost.

Is fixed overhead underallocated or overallocated? By what amount?

Comment on your results. Discuss the variances and explain what may be

driving them.