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3 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
3 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 recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulls the ltem from storage, packs It, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. points In the most recent month, 190,000 Items were shipped to customers using 8,300 direct labor-hours. The company Incurred a total of $29,050 In varlable overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one ltem and the variable overhead rate is $3.55 per direct labor-hour Requirecd 1. What Is the standard labor-hours allowed (SH) to shlp 190,000 items to customers? 2. What is the standard varlable overhead cost allowed (SH x SR) to shlp 190,000 Items to customers? 3. What Is the varlable overhead spending varlance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "Nne" for no effect (l.e., zero verlance). Input all amounts as positive values. Do no round Intermediete calculatlons.) Answer is complete but not entirely correct. Standard quantity of labor-hours allowed Standard variable overhead cost allowed 5.700 20,235 2 Variable overhead spending variance Variable overhead rate variance Variable overhead efficiency variance 415 230U
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