The condensed form of Nordstrop Company$$s flexible budget for manufacturing overhead follows:

Cost

Formula Machine$-$Hours

Overhead Costs $($per machine$-$hour$)6,5007,5008,500$

Variable cost $ $1\mathrm{.}85$ $ $12,025$ $ $13,875$ $ $15,725$

Fixed cost $19,50019,50019,500$

Total overhead cost $ $31,525$ $ $33,375$ $ $35,225$

The following information is available for a recent period:

The denominator activity of $6,500$ machine$-$hours was chosen to compute the predetermined overhead rate.

At the $6,500$ standard machine$-$hours level of activity, the company should produce $1,300$ units of product.

The company$$s actual operating results were as follows:

Number of units produced $1,600$

Actual machine$-$hours $7,800$

Actual variable overhead costs $ $14,000$

Actual fixed overhead costs $ $25,000$

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 year$$s 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$).)$