ch 10

Logistics Solutions provides order fulitiment services for dotcom merchants, The compony maintains warehouses that stock items carried by its dot com clients. When a client recelvos an ordor from a custamer, the order is forwarded to Logistics Solutions, which pulls the item from storage, pocks it, and ships it to the customer. The company uses a predetermined varioble owerhead rate based on direct labor-hours. In the most recent month, 130,000 items were shipped to customers using 4,700 direct laboe hours. The company incurred a total of $13,630 in varieble overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variabie overhead rate is $2.95 per difect labor hour. Required: 1. What is the standard labor-hours allewed (SH) to shlp 130,000 items to customers? 2. What is the standard variable overheod cost allowed (SH SR) to ship 130,000 rems to customers? 3. What is the varioble overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? Note: For requirements 3 and 4 , indicate the effect of each varlance 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