RCISE 12A-4 Predetermined Overhead Rate; Overhead Variances [LO3, LO4] Norwall Company's variable manufacturing overhead should be $3.00 per standard machine-hour and its fixed manufacturing overhead should be $300,000 per period. a. The denominator activity of 60,000 machine-hours is used to compute the predetermined b. At the 60,000 standard machine-hours level of activity, the company should produce 40,000 c. The company's actual operating results were: The following information is available for a recent period: overhead rate. units of product. 42,000 Actual fixed overhead cost . . $302,400 .. . . . Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost ele- ments. 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