The condensed form of Nordstrop Companys flexible budget for manufacturing overhead follows:

	Cost Formula			Machine-Hours
Overhead Costs	(per machine-hour)			5,500		6,500		7,500
Variable cost	$	1.15		$	6,325	$	7,475	$	8,625
Fixed cost					8,800		8,800		8,800
Total overhead cost				$	15,125	$	16,275	$	17,425

The following information is available for a recent period:

1. The denominator activity of 5,500 machine-hours was chosen to compute the predetermined overhead rate.
2. At the 5,500 standard machine-hours level of activity, the company should produce 2,200 units of product.
3. The companys actual operating results were as follows:

Number of units produced		2,500
Actual machine-hours		6,500
Actual variable overhead costs	$	7,930
Actual fixed overhead costs	$	9,000

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 years 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).)