Required:

Compute the predetermined overhead rate and break it down into variable and fixed cost elements.

Note: Round your answers to $2$ decimal places.

Compute the standard hours allowed for the actual production.

Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero

variance$).$ Input all amounts as positive values. Round your intermediate calculations and final answers to $2$ decimal places.Exercise $10$A$-2($Algo$)$ Predetermined Overhead Rate; Overhead Variances $[$LO$10-3,$ LO$10-4]$

Norwall Company's budgeted variable manufacturing overhead cost is $$1\mathrm{.}90$ per machine$-$hour and its budgeted fixed manufacturing

overhead is $$87,000$ per month.

The following information is available for a recent month:

a$.$ The denominator activity of $34,800$ machine$-$hours is used to compute the predetermined overhead rate.

b$.$ At a denominator activity of $34,800$ machine$-$hours, the company should produce $12,000$ units of product.

c$.$ The company's actual operating results were: