Exercise 10-3 (Algo) Variable Overhead Variances [LO10-3] ogistics Solutions provides order fulfiliment services for dot.com merchants. The company maintains warehouses that stock items arried by its dot com clients. When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which fulls the item from storage. packs it, and ships it to the customer. The company uses a predetermined variable ovethead rate based. on direct labor-hours. in the most recent month, 130,000 items were shipped to customers using 4,700 direct labor-hours. The company incurred a total of 513,630 in variable overhead costs. According to the company's standards, 0.03 direct laber-hours are requlted to fulfil an order for one item and the variable overhead rate is $2.95 per direct labor-hour: Required: 1. What is the standard labor-hours allowed (SH) to ship 130,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 130,000 items to customers? 3. What is the variable 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 eoch variance by'selecting " F " for fovorable, "U" for unfavorable, and "None" for no effect (i.e,, zero variance), input all amounts as positive values, Do not round intermediate calculations