Saved HW CH10 Part2 The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: 1 1 Machine Hours Cost Formula (per machine hour) $ 1.30 7,eee 8,000 9,eee Overhead Costs Variable cost 10 points $ 9,100 $10,40e $11,700 13,300 13,300 13,3ee Fixed cost Total overhead cost $ 22,489 $23,700 $25,000 The following Information is available for a recent period: a. The denominator activity of 7.000 machine hours was chosen to compute the predetermined overhead rate b. At the 7.000 standard machine-hours level of activity, the company should produce 3,500 units of product c. The company's actual operating results were as follows: Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) per MH Predetermined overhead rate Variable rate Ford rate per MH per MH 2. What were the standard hours allowed for the year's actual output? (Do not round Intermediate calculations.) Sudard hours to achial production MS 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 (le, zero variance).) Variable overhead spending variance Variable overhead officiency Variance Fored overhead budget variance Fixed overhead volume variance a. The denominator activity of 7.000 machine-hours was chosen to compute the b. At the 7000 standard machine-hours level of activity, the company should proc c. The company's actual operating results were as follows: Print Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 3,800 7,000 $ 9,700 $ 14,000