The condensed form of Nordstrop Companys flexible budget for manufacturing overhead follows:

	Cost Formula			Machine-Hours
Overhead Costs	(per machine-hour)			6,000		7,000		8,000
Variable cost	$	1.55		$	9,300	$	10,850	$	12,400
Fixed cost					14,400		14,400		14,400
Total overhead cost				$	23,700	$	25,250	$	26,800

The following information is available for a recent period:

1. The denominator activity of 6,000 machine-hours was chosen to compute the predetermined overhead rate.
2. At the 6,000 standard machine-hours level of activity, the company should produce 2,000 units of product.
3. The companys actual operating results were as follows:

Number of units produced		2,300
Actual machine-hours		7,000
Actual variable overhead costs	$	10,220
Actual fixed overhead costs	$	15,000

Required:

1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.)

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

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).)