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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
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 0.5DLH per unit. The company reports the following for this period. xercise 23-17 (Algo) Computing standard overhead rate and total overhead variance LO P4 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DL.H, computed as 51,750 units * 0.5DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead varlance. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance
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