$!$

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 $0\mathrm{.}5DLH$ per unit.

The company reports the following for this period.

Compute the standard overhead rate. Hint: Standard allocation base at $80\%$ capacity is $26,625$

DLH$,$ computed as $53,250$ units $0\mathrm{.}5$ DLH per unit.

Compute the standard overhead applied.

Compute the total overhead variance.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.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 $0\mathrm{.}5DLH$ per unit.

The company reports the following for this period.

$(1)$ 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 $1$

Compute the overhead volume variance. Indicate variance as favorable or unfavorable.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.