Solution:

Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Requirement 2. Is fixed overhead underallocated or overallocated? By what amount? Fixed manufacturing overhead is by Requirement 3. Comment on your results. Discuss the variances and explain what may be driving them. The production-volume variance captures the difference between (5) Granary Bread Company's spending variance means that the actual aggregate of fixed costs (6) the budget amount. For example, monthly leasing rates for baguette-making machines may have (7) those in the budget. 1. Prepare a variance analysis of fixed manufacturing overhead cost. 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. (1) (2) (3) (4) FUNFUNFUNoverallocatedunderallocated (5) the actual overhead costs incurred and the actual output. the budgeted labor hours and the actual labor hours used. the number of budgeted baguettes and the actual number of baguettes produced. (7) decreased below increased above Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Requirement 2. Is fixed overhead underallocated or overallocated? By what amount? Fixed manufacturing overhead is by Requirement 3. Comment on your results. Discuss the variances and explain what may be driving them. The production-volume variance captures the difference between the number of budgeted baguettes and the actual number of baguettes produced. Granary Bread Company's spending variance means that the actual aggregate of fixed costs exceeds the budget amount. For example, monthly leasing rates for baguette-making machines may have increased above those in the budget. 1. Prepare a variance analysis of fixed manufacturing overhead cost. 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. Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Requirement 2. Is fixed overhead underallocated or overallocated? By what amount? Fixed manufacturing overhead is by Requirement 3. Comment on your results. Discuss the variances and explain what may be driving them. The production-volume variance captures the difference between (5) Granary Bread Company's spending variance means that the actual aggregate of fixed costs (6) the budget amount. For example, monthly leasing rates for baguette-making machines may have (7) those in the budget. 1. Prepare a variance analysis of fixed manufacturing overhead cost. 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. (1) (2) (3) (4) FUNFUNFUNoverallocatedunderallocated (5) the actual overhead costs incurred and the actual output. the budgeted labor hours and the actual labor hours used. the number of budgeted baguettes and the actual number of baguettes produced. (7) decreased below increased above Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Requirement 2. Is fixed overhead underallocated or overallocated? By what amount? Fixed manufacturing overhead is by Requirement 3. Comment on your results. Discuss the variances and explain what may be driving them. The production-volume variance captures the difference between the number of budgeted baguettes and the actual number of baguettes produced. Granary Bread Company's spending variance means that the actual aggregate of fixed costs exceeds the budget amount. For example, monthly leasing rates for baguette-making machines may have increased above those in the budget. 1. Prepare a variance analysis of fixed manufacturing overhead cost. 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