Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation...
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Accounting
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 $ $
Compute the standard overhead rate. Hint: Standard allocation base at capacity is DLH computed as units times DLH per unit.
Compute the standard overhead applied.
Compute the total overhead variance.
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