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The White 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 White Bread Company (Click the icon to view the budget data.) The White Bread Company provides the following additional data for the year ended December 31, 2017: (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 White Bread budgeting?) i Data Table The denominator level is 56,000 hours. Data Table Requirement 2. Prepare a variance analysis of variable manufacturing overhead. Begin by calculating the following amounts for the variable overhead that will be used to calculate the variances. 2,800,000 baguettes 2,700,000 baguettes 48,000 hours Actual Input Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead Actual Costs Incurred Flexible Budget Direct manufacturing labor use Variable manufacturing overhead Allocated Overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Budgeted Rate $638,400 Variable MOH Print Done Print Done Requirements 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is White Bread budgeting?) Prepare a variance analysis of variable manufacturing overhead. 3. Discuss the variances you have calculated and give possible explanations for them. 2. D Enter any number in the edit fields and then click Check Answer. Print Done