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 8,500 9,500 10,500 Fixed cost Total overhead cost $ 8,925 $ 9,975 $11,025 28,900 28,900 28,900 $37,825 $38,875 $39,925 The following information is available for a recent period: a. The denominator activity of 8,500 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,500 standard machine-hours level of activity, the company should produce 2,125 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 2,425 8,500 $ 9,800 $29,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable rate Fixed rate per MH per MH per MH