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3 Logistics Solutions provides order fulfiliment services for dotcom merchants. The company maintains warehouses that stock items camied by its dotcom clients. When a client
3 Logistics Solutions provides order fulfiliment services for dotcom merchants. The company maintains warehouses that stock items camied by its dotcom clients. When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which 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, 195,000 items were shipped to customers using 8.600 direct labor-hours. The company incurred a total of $30,530 in varlable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.60 per direct labor-hout Required: 1. What is the standard labor hours allowed (SH) to ship 195,000 items to customers? 2. What is the standard varlable overhead cost allowed (SH SR ) to ship 195,000 items to customers? 3. What is the variable overhead spending varlance? 4. What is the variable overhead rate variance and the varlable overhead efficiency variance? (For requirements 3 and 4 , 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. Do not round intermediate calculations.)
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