Manuel Company predicts it will operate at of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is DLH per unit. The company reports the following for this period.

Flexible Budget at Capacity Actual Results

Production in units

Overhead:

Variable overhead $

Fixed overhead

Total overhead $ $

Exercise Algo Computing standard overhead rate and total overhead variance LO P

Compute the standard overhead rate. Hint: Standard allocation base at capacity is DLH computed as units times DLH per unit.

Compute the standard overhead rate

Compute the standard overhead applied.

Compute the total overhead variance.