Flexible Budgets, Overhead Cost Variances, and Management Control Fixed manufacturing overhead variance analysis The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores....

Flexible Budgets, Overhead Cost Variances, and Management Control
Fixed manufacturing overhead variance analysis
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 labor-hours. The following is some budget data for the  Sourdough Bread Company for 2017.
		Direct manufacturing labor use	0.02	hours per baguette
		Fixed manufacturing overhead	$3.00	per direct manufacturing labor-hour
The following is additional information for the Sourdough Bread Company for the year ended December 31, 2017:
		Planned (budgeted) output	3,100,000	baguettes
		Actual production	2,600,000	baguettes
		Budgeted direct manufacturing labor	62,000	hours
		Actual direct manufacturing labor	46,800	hours
		Actual fixed manufacturing overhead	$294,000
Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Requirements
1	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 zero.
	b.	Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances.
2	Is fixed overhead underallocated or overallocated? By what amount?
	a.	Use the ABS function when calculating the underallocated or overallocated amount.)

Extracted text: 1. 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 zero. b. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Same Budgeted Lump Sum Actual Costs Regardless of Allocated Incurred Output Level Flexible Budget Overhead Spending variance Efficiency variance Production-volume variance 2. Is fixed overhead underallocated or overallocated? By what amount? a. Use the ABS function when calculating the underallocated or overallocated amount. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Fixed manufacturing overhead is by