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 years actual output?

3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances.

UT 10 points The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Machine-Hours - Formula (per Overhead Costs machine 6,00 7,000 8, cee hour) Variable cost $ 1.55 $ 9,380 $10,850 $ 12,480 Fixed cost 14,480 14,480 14,480 eBook Total overhead cost $ 23,780 $25,250 $ 26,880 Print The following information is available for a recent period: References a. The denominator activity of 6.000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 6.000 standard machine-hours level of activity, the company should produce 2,000 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 2,300 7,080 $ 19,220 $ 15,000