Part 2:

! 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. Flexible Budget at 80% Capacity 52,500 Actual Results 48,000 Production (in units) Overhead Variable overhead Fixed overhead Total overhead $ 288,750 52,500 $ 341,250 $ 338,000 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,250 DLH, computed as 52,500 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 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the varianc selecting favorable, unfavorable, or no variance.) Volume Variance Volume variance