Use the following information for the Exercises below. (Static)

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[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.

	Flexible Budget at 80% Capacity	Actual Results
Production (in units)	50,000	44,000
Overhead
Variable overhead	$ 275,000
Fixed overhead	50,000
Total overhead	$ 325,000	$ 305,000

Exercise 8-17 (Static) Computing standard overhead rate and total overhead variance LO P4

1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,000 DLH, computed as 50,000 units 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)