2. Compute the standard hours allowed for the actual production. 3. Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting ''F'' for favorable, ''U'' for unfavorable, and ''None'' for no effect (i.e., zero variance). Round your intermediate calculations and final answers to 2 decimal places.) Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume varianceNorwall Company's variable manufacturing overhead should be $1.20 per standard machine-hour and its fixed manufacturing overhead should be $105,966 per month. The following information is available for a recent month: a. The denominator activity of 33,640 machine-hours is used to compute the predetermined overhead rate b. At the 33,640 standard machine-hours level of activity, the company should produce 11,600 units of product. c. The company's actual operating results were: Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements (Round your answers to 2 decimal places.)