The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Overhead Costs Variable cost Cost Formula (per machine- hour) $1.05 Machine-Hours 8,000 9,000 10,000 Fixed cost Total overhead cost $ 8,400 $ 9,450 $10,500 24,800 24,800 24,800 $ 33,200 $ 34,250 $35,300 The following information is available for a recent period: a. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,000 standard machine-hours level of activity, the company should produce 3,200 units of product. c. The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 3,500 8,500 $ 9,860 $ 25,100