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! Required information Use the following information for the Exercises below. ( Algo ) [ The following information applies to the questions displayed below. ]

!
Required information
Use the following information for the Exercises below. (Algo)
[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.
Exercise 21-17(Algo) Computing standard overhead rate and total overhead variance LO P4
Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,125 DLH, computed as 52,250 units 0.5
DLH per unit.
Compute the standard overhead applied.
Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
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