125% A View Zoom Add Category Insert Table Chart Text Shape Media Comment Collaborate Format Organize E10-1 E10-2 E10-3 E10-4 P10-16 Sheet Sheet Name Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which E10-3 pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours In the most recent month, 120,000 items were shipped to customers using 2,300 direct labor-hours. The company incurred a total of Background $7,360 in variable overhead costs. According to the company's standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour. Duplicate Sheet Delete Sheet Required: 1. What is the standard labor-hours allowed (SH) to ship 120,000 items to customers? 2. What is the standard variable overhead cost allowed (SH * SR) to ship 120,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? GIVEN Items shipped to customer 120,000 Total direct labor hours 2,300 Total variable overhead cost incurred 7,360 Standard direct labor hours to fulfill an order 0.02 Standard item variable overhead rate per direct labor hour 3.25 Items shipped to customer 120,000 Standard direct labor hours to fulfill an order 0.02 Standard quantity of labor hours allowed 2,400 2 Standard quantity of labor hours allowed 2.400 Standard item variable overhead rate per direct labor hour 3.25 Standard variable overhead cost allowed 7,800 3 Standard quantity of labor hours allowed 2.400 Standard item variable overhead rate per direct labor hour 3.25 Total variable overhead cost incurred 7,360 Variable overhead rate variance 440 F Total direct labor hours 2,300 Standard item variable overhead rate per direct labor hour 3.25 Total variable overhead cost incurred 7,360 Variable overhead rate variance 115 Standard variable overhead cost allowed 7,800 Total direct labor hours 2,300 Standard item variable overhead rate per direct labor hour 3.25 Variable overhead efficiency rate 325 F