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

	Cost Formula			Machine-Hours
Overhead Costs	(per machine-hour)			6,500		7,500		8,500
Variable cost	$	1.25		$	8,125	$	9,375	$	10,625
Fixed cost					11,700		11,700		11,700
Total overhead cost				$	19,825	$	21,075	$	22,325

The following information is available for a recent period:

1. The denominator activity of 6,500 machine-hours was chosen to compute the predetermined overhead rate.
2. At the 6,500 standard machine-hours level of activity, the company should produce 3,250 units of product.
3. The companys actual operating results were as follows:

Number of units produced		3,550
Actual machine-hours		7,000
Actual variable overhead costs	$	8,960
Actual fixed overhead costs	$	12,000

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