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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 $26,625$ DLH$,$

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