Please do not give solution in image format thanku Required:1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2decimal places.)Predetermined overhead rateVariable rateFixed rate2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.)Standard hours for actual productionper MHper MHper MHVariable overhead spending varianceVariable overhead efficiency varianceFixed overhead budget varianceFixed overhead volume varianceMHs3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do notround intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows:CostFormula(per machine-hour)Overhead CostsVariable costFixed costTotal overhead costNumber of units producedActual machine-hours$2.00Actual variable overhead costsActual fixed overhead costsMachine-HoursThe following information is available for a recent period:a. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate.b. At the 8,000 standard machine-hours level of activity, the company should produce 2,000 units of product.c. The company's actual operating results were as follows:2,3009,000$ 17,800$ 28,0008,000$ 16,00026,400$ 42,400 $ 44,4009,00010,000$ 18,000 $20,00026,400 26,400$46,400

Variance arises due to difference in the actual costs and standard costs. The variance is favorable…

The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- Overhead Costs Variable cost Fixed cost Total overhead cost hour) Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs $2.00 Machine-Hours 2,300 9,000 $ 17,800 $ 28,000 8,000 9,000 $ 16,000 $ 18,000 26,400 26,400 $ 42,400 $ 44,400 $ 46,400 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 2,000 units of product. c. The company's actual operating results were as follows: 10,000 $20,000 26,400