E13-8 Time allowed: 20 minutes Norwall Company's flexible budget for manufacturing overhead (in condensed form) is given below: The following information is available for a recent period: 1 A denominator activity of 60,000 machine-hours is used to compute the predetermined overhead rate. 2 At the 60,000 standard machine-hours level of activity, the company should produce 40,000 units of product. 3 The company's actual operating results were: Required 1 Compute the predetermined overhead rate and break it down into variable and fixed cost elements. 2 Compute the standard hours allowed for the actual production. 3 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances