The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: The following information is available for a recent period: a. The denominator activity of 7,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 7,000 standard machine-hours level of activity, the company should produce 1,750 units of product. c. The company's actual operating results were as follows: 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 year's 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).)