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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 $26,750DLH,$ computed as $53,500$ 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. 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 $0\mathrm{.}5$ DLH per unit. The company reports the following for this period.

Flexible Budget at $80\%$ Capacity Actual Results

Production $($in units$)53,50049,600$

Overhead

Variable overhead $ $294,250$

Fixed overhead $53,500$

Total overhead $ $347,750$ $ $351,200$

$(1)$ Compute the overhead volume variance. Indicate variance as favorable or unfavorable.

$(2)$ Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.