Norwall Company's variable manufacturing overhead should be $1.30 per standard machine-hour and its fixed manufacturing overhead should be $30,368 per month.

The following information is available for a recent month:

1. The denominator activity of 8,320 machine-hours is used to compute the predetermined overhead rate.
2. At the 8,320 standard machine-hours level of activity, the company should produce 3,200 units of product.
3. The companys actual operating results were:

Number of units produced		3,690
Actual machine-hours		9,700
Actual variable manufacturing overhead cost	$	11,155
Actual fixed manufacturing overhead cost	$	35,000

Required:

1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.)

Predetermined overhead rate		per MH
Variable element		per MH
Fixed element		per MH

2. Compute the standard hours allowed for the actual production.

Standard hours

MHs.

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 variance