11/32 drill for 1/8 tap is correct without reaming, however drilling with hand held drill in less then ideal situation will tend to make an oversize hole, leading to have to tap deeper with npt tap, you would be better off with a 5/16 drill or smaller first, then correct size after, hole will be more accurate, you dont have much room for error with the thin wall of the manifold, ideal is to use a npt reamer to size hole but an overkill,$$, I typically use a Q or R drill in my business, and nptf taps,I typically need shallow npt tapped holes, these drills a tad smaller.