Variable manufacturing overhead variance analysis

The French 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 basis of standard direct manufacturing labor-hours. Following is some budget data for the French Bread Company:

Direct manufacturing labor use                                   0.02 hours per baguette

Variable manufacturing overhead                   $10.00 per direct manufacturing labor-hour

The French Bread Company provides the following additional data for the year ended December 31, 2009:

Planned (budgeted) output Actual production Direct manufacturing labor Actual variable manufacturing overhead 3,200,000 baguettes 2,800,000 baguettes 50,400 hours $680,400