Solution-What is the denominator level used for allocating

What is the denominator level used for allocating variable

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Reference no: EM132569068

Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories:

Direct manufacturing labor use 0.02 hours per baguette
Variable manufacturing overhead $10.00 per direct manufacturing labor-hour

The Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:

Planned (budgeted) output 3,100,000 baguettes
Actual production 2,600,000 baguettes
Direct manufacturing labor 46,800 hours
Actual variable manufacturing overhead $617,760

Required:

Question 1: What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)

Question 2: write a variance analysis of variable manufacturing overhead.

Question 3: Discuss the variances you have calculated and give possible explanations for them.

Reference no: EM132569068

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What is the denominator level used for allocating variable

Reference no: EM132569068

Reference no: EM132569068

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