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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)	54,000	50,400
Overhead
Variable overhead	$ 297,000
Fixed overhead	54,000
Total overhead	$ 351,000	$ 357,800

1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,000 DLH, computed as 54,000 units 0.5 DLH per unit.
2. Compute the standard overhead applied.

Compute the total overhead variance.