Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6 . Hi I need help with this question please! Loglstlcs Solutions provldes order fulfillment servlces for dotcom merchants. The company maintains warehouses that stock
Hi I need help with this question please!
Loglstlcs Solutions provldes order fulfillment servlces for dotcom merchants. The company maintains warehouses that stock Items carried by Its dotcom cllents. When a client recelves an order trom a customer, the order Is forwarded to Loglstlcs Solutlons, wtnlcn pulls the Item from storage, packs t, and stnlps It to the customer. The company uses a predetermlned varlale overhead rate based on direct labor-hours. In the most recent month, 170,000 Items were snipped to customers uslng 7,100 dlrect labor-hours. The company Incurred a total ot $23,430 In varlable overhead costs. Accordlng to the company's standards, 003 direct labor-hours are required to tultill an order tor one Item and the varlale overhead rate Is S33S per dlrect labor-hour. Requlred: 1. What Is the standard labor-nours allowed (SH) to stilp 170,000 Items to customers? 2. What Is the standard varlale overhead cost allowed (SH x SR) to ship 170,000 rems to customers? 3. What Is the varlale overhead spendlng varlance? 4. What Is the varlable overhead rate varlance and the varlale overhead efficiency variance? (For requlrements 3 and 4, Indlcate the effect of each varlance by selectlng "F" for favorable, "W for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltlve values. Do not round Intermedlete calculatlons.) Standard quantity of labor-hours allowed Standard variable overhead cost allowed Variable overhead spending variance Variable overhead rate variance Variable overhead efficiency variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started