5 Book 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 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, 160,000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs. According to the company's standards, 0.03 direct labor hours are required to fulfill an order for one Item and the variable overhead rate is $3.25 per direct labor hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 160,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 160,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overheud efficiency variance? (For requirements 3 and 4, Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (e., zero variance). Input all amounts as positive values. Do not found intermediate calculations.) Hint Prim References 1. Standard quartly of labor hours allowed 2. Standard Variable overhead cout allowed 3. Variable overhead spending variance 4. Variable overhead rate variance 4. Variable overhead efficiency variance Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The company uses a standard cost system with the following standards for each product (on a, per unit basis): Raw Material Standard Labor Time Product X442 Y661 Sintering Tinishing Alpha 2.0 kilon 1.5 liters 0.10 hours 1.00 hours Tota? 3.0 kilos 4.5 liters 0.30 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Purchase Used in Material Purchases Cont Standard Price Production X442 14,200 kilos $ 55,00 $ 3.70 per kilo 0.700 kilos 7661 15.200 liters $ 22.800 $ 1.60 per liter 13,200 liter The following additional Information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $22.00 per hour in Sintering and $18.10 per hour in Finishing c. During May, 1.200 direct labor hours were worked in Sintering at a total labor cost of $27.240, and 2.870 direct labor hours were worked in Finishing at a total labor cost of $60,270. d. Production during May was 1,700 Alphabs and 1.800 Zeta7s. Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor 2. Compute the materials price and quantity variances for each material 3. Compute the labor rate and efficiency variances for each operation Complete the standard cost card for each product, showing the standard cost of dire answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost Alphab: Direct materials-X442 kilos per kilo liters per liter per hour hours hours per hour Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta7 Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total kilos per kilo liters per liter hours per hour hours per hour Required 2 > Required Required 2 Required 3 Compute the materials price and quantity variances for each material. (Indi favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance) Direct Materials Variances--Material X442: Materials price variance Materials quantity variance Direct Materials Variances-Material Y661: Materials price variance Materials quantity variance