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 $0\mathrm{.}5$ DLH per unit. The company reports the following for this period.

Flexible Budget at $80\%$ Capacity Actual Results

Production $($in units$)52,75048,400$

Overhead

Variable overhead $ $290,125$

Fixed overhead $52,750$

Total overhead $ $342,875$ $ $341,300$

Exercise $23-17($Algo$)$ Computing standard overhead rate and total overhead variance LO P$4$

Compute the standard overhead rate. Hint: Standard allocation base at $80\%$ capacity is $26,375$ DLH$,$ computed as $52,750$ units $\backslash$times $0\mathrm{.}5$ DLH per unit.

Compute the standard overhead applied.

Compute the total overhead variance.