The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula Machine-Hours (per machine- Overhead Costs hour ) 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: a. The denominator activity of 6,500 machine-hours was chosen to compute the predetermined overhead rate. b. At the 6,500 standard machine-hours level of activity, the company should produce 1,300 units of product. c. 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 y decimal places.)