Required information [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. Production (in Flexible Budget Actual at 80% Capacity Results units) 51,750 46,800 Overhead Variable overhead Fixed overhead $ 284,625 51,750 Total overhead $ 336,375 328,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units x 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.) 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Unfavorable
1 Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its
![Required information
[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.
Production (in
Flexible Budget Actual
at 80% Capacity Results
units)
51,750
46,800
Overhead
Variable
overhead
Fixed overhead
$ 284,625
51,750
Total overhead
$ 336,375
328,100
1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as
51,750 units x 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.)
1. Standard overhead
rate
2. Standard overhead
applied
3. Overhead variance
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb7bb009-44ca-48e3-bddb-221a55356d47%2F4e60ddaf-532c-4840-b023-3fb801268c02%2Fvi1p4ap_processed.jpeg&w=3840&q=75)
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