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

Overhead Costs Cost Formula (per machine-hour) Machine-Hours

6,500 7,500 8,500

Variable cost $1.85 $12,025 $13,875 $15,725

Fixed Cost $19,500 $19,500 $19,500

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

The following information is available for a recent period:

1. The denominator activity of 6,500 machine-hours was chosen to compute the predetermined overhead rate.
2. At the 6,500 standard machine-hours level of activity, the company should produce 1,300 units of product.
3. 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.)

Predetermined overhead rate ??? per MH

Variable rate ??? per MH

Fixed rate ??? per MH

2.What were the standard hours allowed for the year's actual output?(Do not round intermediate calculations.)

Standard hours for actual production ??? MHs

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).)

Variable overhead spending variance ???

Variable overhead efficiency variance ???

Fixed overhead budget variance ???

Fixed overhead volume variance ???