### Fixed Manufacturing Overhead Variance Analysis (Continuation of #2 above)**Introduction:**The Sourdough 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:**Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. The following budget data is provided for the Sourdough Bread Company:- **Direct manufacturing labor use:** 0.02 hours per baguette- **Variable manufacturing overhead:** $10.00 per direct manufacturing labor-hour**Fixed Manufacturing Overhead:**Additionally, the company allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. - For 2021, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour.- Actual fixed manufacturing overhead incurred during the year was $284,000.**Additional Data for the Year Ended December 31, 2021:**- **Planned (budgeted) output:** 3,600,000 baguettes- **Actual production:** 2,900,000 baguettes- **Direct manufacturing labor:** 52,600 hours- **Actual variable manufacturing overhead:** $678,540### Tasks:1. **Prepare a variance analysis of fixed manufacturing overhead cost:** - **Budgeted fixed manufacturing overhead:** (3,600,000 baguettes × 0.02 hours/baguette) × $3.00/hour = $216,000. - **Actual fixed manufacturing overhead:** $284,000 Fixed Manufacturing Overhead Variance = Actual Fixed Overhead - Budgeted Fixed Overhead = $284,000 - $216,000 = $68,000 (unfavorable)2. **Is fixed overhead under-allocated or over-allocated? By what amount?** Fixed overhead is over-allocated by $68,000.3. **Comment on your results. Discuss the variances and explain what may be driving them:** - The unfavorable fixed manufacturing overhead variance of $68,000 indicates that the actual fixed costs exceeded the budgeted costs by the same amount. - Possible reasons for this variance may include higher-than-expected expenses in fixed cost items such as rent, salaries of permanent staff, insurance, or other overheads that are not directly variable with production levels. -

Name: ### Fixed Manufacturing Overhead Variance Analysis (Continuation of #
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Description: ### Fixed Manufacturing Overhead Variance Analysis (Continuation of #2 above)**Introduction:**The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and di

Solution: (1). Particulars Actual costs Same budgeted (Regardless of output level) Flexible…

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The Sourdough Bread Company bakes baquettes 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 Sourdough Bread Company:

The Sourdough Bread Company bakes baquettes 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 Sourdough Bread Company:

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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I'm trying to find the correct standard rate.
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