The following is some budget data for the Boston Bread company for 2020 and additional information for the year ended December 31, 2020

Requirement 1

	Actual costs incurred	Same budgeted lump sum regardless of output level	Flexible budget	Allocated overhead
Fixed MOH

4 variance analysis	Spending variance	Efficiency variance	Production volume variance
Fixed MOH

Requirement 2

Fixed manufacturing overhead is (over allocated, under allocated ) by $_____

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 Company 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 manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $284,000. Direct manufacturing labor use Variable manufacturing overhead 0.02 hours per baguette $10.00 per direct manufacturing labor-hour Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead $626,940 3,300,000 baguettes 2,700,000 baguettes 48,600 hours 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