Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicat Logistics

image text in transcribed
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicat Logistics Solutions provides order fulfillment services for dot.com merchants. Ine company maintains warenouses 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, 125,000 items were shipped to customers using 4.400 direct labor hours. The company incurred a total of $12,540 in variable 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 $2.90 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 125,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 125,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead officiency 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 no round Intermediate calculations.) Answer is complete but not entirely correct. 5.000 s Standard quantity of labor-hours allowed Standard variable overhead cost allowed Variable overhead spending variance Variable overhead rate variance Variable overhead efficiency variance F $ $ $ 3% 3 220 F 1,740 F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Food Safety And Quality Auditor

Authors: Steven Wilson

4th Edition

1951058186, 978-1951058180

More Books

Students also viewed these Accounting questions

Question

Prepare for a successful job interview.

Answered: 1 week ago

Question

Describe barriers to effective listening.

Answered: 1 week ago

Question

List the guidelines for effective listening.

Answered: 1 week ago