Item2 Check my work Check My Work button is now enabled1Item 2 Item 2 The condensed form of Nordstrop Companys flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 5,000 6,000 7,000 Variable cost $ 1.70 $ 8,500 $ 10,200 $ 11,900 Fixed cost 13,500 13,500 13,500 Total overhead cost $ 22,000 $ 23,700 $ 25,400 The following information is available for a recent period: The denominator activity of 5,000 machine-hours was chosen to compute the predetermined overhead rate. At the 5,000 standard machine-hours level of activity, the company should produce 1,000 units of product. The companys actual operating results were as follows: Number of units produced 1,300 Actual machine-hours 9,200 Actual variable overhead costs $ 14,260 Actual fixed overhead costs $ 18,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) 2. What were the standard hours allowed for the years actual output? (Do not round intermediate calculations.) 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)