The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula w (per machine 0verhead Costs hour) 8,000 9,000 10,000 Variable cost $2.00 $16,000 $18,000 $20,000 Fixed cost 26,400 26,400 26,400 Total overhead cost $42,400 $44,400 $46,400 The following information is available for a recent period: a. The denominator activity of 8,000 machinehours was chosen to compute the predetermined overhead rate. b. At the 8,000 standard machinehours level of activity, the company should produce 2,000 units of product. c. The company's actual operating results were as follows: Number of units produced 2,300 Actual machinehours 9,000 Actual variable overhead costs $17,800 Actual fixed overhead costs $28,000 I Required: 1. Compute the predetermined overhead rate and break it down into variable and xed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate -m Variable rate Fixed rate 2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) 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 efciency variance Fixed overhead budget variance Fixed overhead volume variance