The denominator activity of 8000 machine-hours was chosen

Question

Weller Company's flexible budget for manufacturing overhead (in condensed form) follows:

Overhead Costs	Cost formula	Machine hours
	(per machine hour)
		8,000	9,000	10,000
Variable cost...	$1.05	$8,400	$9,450	$10,500
Fixed cost...		24,800	24,800	24,800
Total overhead cost...		$32,200	$34,250	$35,300

The following information is available for a recent period:

1. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate.
2. At the 8,000 standard machine hours level of activity the company should produce 3,200 units of product.
3. The company's actual operating results were as follows:

Number of units produced... 3,500

Actual machine hours... 8,500

Actual variable overhead costs... $9,860

Actual fixed overhead costs... $25,100

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 year's actual output?

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