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Required information [ The following information applies to the questions displayed below. ] Manuel Company predicts it will operate at 8 0 % of its

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 0.5DLH 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 0.5DLH 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.
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