From the following details provided by NutShell Inc., prepare the manufacturing overhead budget for the year 2015. Prepare the manufacturing overhead budget for the year 2015. Also, calculate the overhead allocation rate, using direct labor hours as the allocation base. Grace Company is a manufacturer of candles. The standard direct materials quantity required to produce one large candle is 1 pound at a cost of $5 per pound. During November, 2015, 7,200 large candles were produced using 7,500 pounds of direct materials which cost $45,000. Using the format below, prepare an analysis of the direct materials variances