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).) x Answer is not complete. Variable overhead spending variance F Variable overhead efficiency variance F Fixed overhead budget variance U Fixed overhead volume variance FExercise 10-13 Predetermined Overhead Rate; Overhead Variances [LO4, LO5, LO6] The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula (per Overhead Costs machine- 8,000 9,000 10,000 hour ) Variable cost $ 1.65 $13, 200 $14, 850 $16, 500 Fixed cost 20,800 20, 800 20, 800 Total overhead cost $34,000 $35, 650 $37, 300 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 1,600 units of product. c. The company's actual operating results were as follows: Number of units produced 1,900 Actual machine-hours 9,000 Actual variable overhead costs $ 13, 680 Actual fixed overhead costs $ 25,000 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 Fixed rate per MH 2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) Standard hours for actual production MHs