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. The Sourdough Bread Company allocates fixed
manufacturing overhead to products on the basis of standard direct manufacturing laborhours. The following is some
budget data for the Sourdough Bread Company for
Direct manufacturing labor use
Fixed manufacturing overhead
hours per baguette
$ per direct manufacturing laborhour
The following is additional information for the Sourdough Bread Company for the year ended December :
Prepare a variance analysis of fixed manufacturing overhead cost. Use the exhibit that shows the variance analysis of fixed
manufacturing overhead cost as a guide.
a For variances with a zero amount, leave the box empty; do not select a label or enter a formula or a zero.
b Use the ABS function when calculating variances, and use the dropdown selections for or when describing the variances.
Always use cell references and formulas where appropriate to receive full credit. If you copypaste from the Instructions tab or if you type the
numbers in you will be marked wrong.
