Required information

Use the following information for the Exercises below. $($Algo$)$

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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.

Exercise $21-17($Algo$)$ Computing standard overhead rate and total overhead variance LO P$4$

Compute the standard overhead rate. Hint: Standard allocation base at $80\%$ capacity is $27,375$ DLH$,$ computed as $54,750$ units $0\mathrm{.}5$

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.$)$