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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 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 $26,875DLH,$ computed as $53,750$ units $x$

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

Compute the standard overhead applied.

Compute the total overhead variance.

Note: Indleate the effect of the varlance by selecting favorable, unfevorable, or no varlence.