The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Machine Hours Cost Formula (per machine-hour) Overhead Costs 8,000 9,000 10,000 Variable cost $1.05 $ 8,400 $ 9,450 $10,500 Fixed cost 24.800 24,800 24,800 Total overhead cost $33,200 $34,250 $35,300 Page 425 The following information is available for a recent period: a. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,000 standard machine-hours level of activity, the company should produce 3,200 units of product c. The company's actual operating results were as follows: Number of units produced 3,500 Actual machine-hours 8,500 Actual variable overhead costs $9,860 Actual fixed overhead costs $25,100 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. 2. What were the standard hours allowed for the year's actual output? 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances