Answer Happy

Required information Use the following information for the Exercises below. (Algo) [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 50, 250 Actual Results 44,400 Production (in units) Overhead Variable overhead Fixed overhead Total overhead $ 276,375 50,250 $ 326,625 $ 308,300
Exercise 21-17 (Algo) Computing standard overhead rate and total overhead variance LO P4 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,125 DLH, computed as 50,250 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.) Answer is complete but not entirely correct. 1. Standard overhead rate $ 13 2. Standard overhead applied $ 308,300 3. Overhead variance $ 25,125 X Unfavorable