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.

	Flexible Budget at 80% Capacity	Actual Results
Production (in units)	50,500	44,800
Overhead
Variable overhead	$ 277,750
Fixed overhead	50,500
Total overhead	$ 328,250	$ 311,600

1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,250 DLH, computed as 50,500 units 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

1. Standard overhead rate
2. Standard overhead applied
3. Overhead variance