Exercise 9-6 (Algo) Variable Overhead Variances [LO9.6] Logistics Solutions provides order fulfillment services for dot.com merchants, The company maintains warehouses that stock items carried by its dot.com clients. When a client recelves 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, 160,000 items were shipped to customers using 6,500 divect labor-hours. The company incurred a total of $20,800 in varlable overhead costs. According to the company/s standards, 0.03 direct labor-hours are required to fultill an order for one itom and the variable overheod rate is $3.25 per direct labor-hour. Required: 1. What is the standard labor-hours alowed (SH) to ship 160.000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR ) to ship 160,000 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? (For requirements 3 and 4 , indicate the effect of each variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (0.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations)