The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Machine-Hours Cost Formula (per machine- hour) $1.10 Overhead Costs Variable cost Fixed cost Total overhead cost 5,000 6,000 7,000 $ 5,500 $ 6,600 $ 7,700 7,500 7,500 7,500 $13,000 $14,100 $15, 200 The following information is available for a recent period: a. The denominator activity of 5,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 5,000 standard machine-hours 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 Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 2,300 5, 400 $6,426 $8,000 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 per MH per MH per MH Fixed rate 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