FB 10

Required information [The following information applies to the questions displayed below] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,375DLH, computed as 50,750 units * 0.5 LL per unit. - Compute the standard overhead applied. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfovorable, or no variance.)