The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below. sandard Quantity Direct materials Orect labour 5.0 milliltres 0.5 hours Standard Price or late $ 0.29 per millilitres $ 12.00 per hour Standard Cost $1.45 $ 6.00 During the most recent month, the following activity was recorded: a 22.000 milltitres of matertal was purchased at a cost of $0.24 per millilitre. b. The company produced only 2,000 bottles, using 18,000 mililitres of material (The rest of the material purchased remained in raw materials inventory) 2 725 hours of direct labour time was recorded at a total labour cost of $8,700 Required Compute the direct matertal price and quantity vartances for the month (Indicate the effect of each vartance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (Le, zero vartance)) Materials price variance Materials quantity variance The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Machine-Hours Cost Formula (per machine hour) $ 1.70 Overhead Costs Variable cost Fixed cost 5,000 6,000 7,000 $ 8,500 $10,200 $ 11,900 13,500 13,500 13,50 Total overhead cost $ 22,000 $23,700 $25,400 The following Information is available for a recent period: a. The denominator activity of 5,000 machine hours was chosen to compute the predetermined overhead rate b. At the 5,000 standard machine-hours level of activity, the company should produce 1,000 units of product c The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 1,300 9,200 $ 14,260 $ 18,000 Required. 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements (Round your answers to 2 decimal places.) Predetermined overhead rate per MH Variable rate per MH per MH Fored rate 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 fored overhead budget and volume vartances. (Do not round Intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each varlance by selecting F for favourable. "U" for unfavourable, and "None" for no effect (le, zero varlance).) Varable overhead spending variance Variable overhead efficiency variance Fored overhead budget vanance Fired overhead volume variance