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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 0.5 DLH per unit. The company reports the following for this period.

	Flexible Budget at 80% Capacity	Actual Results
Production (in units)	53,500	49,600
Overhead
Variable overhead	$ 294,250
Fixed overhead	53,500
Total overhead	$ 347,750	$ 351,200

1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,750 DLH, computed as 53,500 units 0.5 DLH per unit.
2. Compute the standard overhead applied.

Compute the total overhead variance.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

\begin{tabular}{|l|l|l|} \hline 1. Standard overhead rate & & \\ \hline 2. Standard overhead applied & & \\ \hline 3. Overhead variance & & Unfavorable \\ \hline \end{tabular} 1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Complete this question by entering your answers in the tabs below. Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance