The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Machine-Hours Cost Formula (per machine 8,0009,000 10,000 Skipped hour) 13,20014,85016,500 Variable cost $1.65 $ Fixed cost 20,800 20,800 20,800 34,000 35,65037.300 Total overhead cost The following information is available for a recent period: The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate. At the 8,000 standard machine-hours level of activity, the company should produce 1,600 units of product. b. c. The company's actual operating results were as follows 1,900 9,000 Number of units produced Actual machine-hours Actual variable overhead costs $ 13,680 Actual fixed overhead costs $25,000