Exercise 11-3 Variable Overhead Variances [LO11-31 Logistics Solutions provides order fulfilment services for dot.com merchants. The company maintains warehouses that stock ters carried by its dot.com clients. When a client receive an order from a customer the order is forwarded to Logistics Solutions, which puts the item from storage, packs and ships to the customer. The company uses a predetermined variace overhead rate based on direct labor-hours In the most recent month 120,000 items were shipped to customers using 4.100 direct labor hours The company incurred a lotal of $11.480 in variable overhead costs According to the company's standards 003 direct labor hours are required to fulf an order for one item and the variable overhead rate is $285 per direct labor-hour Required: 1 According to the standards, what Variable overhead cost should have been incurred to (Round labor.hours per item and overhead cost per hour to 2 decimal places.) the orders for the 120,000 items? How much does this differ from the actual vanable overhead cost? Number of items shipped Standard direct labor hours per item Total direct labor-hours allowed Standard variable overhead cost per hour Total standard variable overhead cost Actual variable overhead cost incurred Total standard variable overhead cost Total variable overhead variance varianta variante da various 2. Break down the difference computed in the Type here to search of each variance A O for ENG 1257 AM 10/12/2013 Total standard variable overhead cost Total variable overhead variance $ 2. Break down the difference computed in (1) above into a variable overhead rate variance and a variable overhead efficiency variance (Indic favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Variable overhead rate variance Variable overhead efficiency variance Type here to search Eta e 9