Exercise 10-3 (Algo) Variable Overhead Variances [LO10-3] Logistics Solutions provides order fuifilment services for dotcon meichants, The company maintains warehouses that stock iteris callied by its dot com clients When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulis the item from storage, packs it, and ships it to the customer the company uses a predetermined variable overhead rate based on direct laboc-hours. In the most iecent month, 180,000 items were shipped to customers using 7,700 direct iabor-hours The company incured a totat of $26380 in variable overhead costs? According to the company' 9 standards, 0.03 direct iabor-houts are requited to fulfil an order for one ifem and the vanable overnead rate 15 \$s 45 per direct labor-hour Required: 1. What is the standard labor-hours allowed (SH) to stip 180,000 items to customers? 2. What is une standard varlable overhead cost allowed (SH - SR) to ship 180,000 items to cusiomers? 3. What is the variable overhead spending vanance? 4. What is the varlable overhead rate variance and the variable overhead emiciency variance? (For requirements 3 and 4 , indicate the effect of eech varlance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (1.e, zero varionce), Input oll amounts as pocitive values. Do not round Intermediate colculations.)