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help Logistics Solutions provides order fulfilment services for dotcom merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client
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Logistics Solutions provides order fulfilment services for dotcom 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, 165,000 items were shipped to customers using 6,800 direct labor-hours. The company incurred a fotal of $22,100 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fuctill an order for one item and the variable overhead rate is $3.30 per direct laborhour: Required: 1. What is the standard labor-hours allowed (SH) to ship 165,000 items to customers? 2. What is the standard variable ovethead cost allowed (SHSR ) to ship 165,000 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 (Le.. zero variance). Input all amounts as positive values. Do not round intermediate calculations.) SkyChefs, Incorporated, prepares in-fight meals for a number of major alrlines, One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 6,500 of these meals using 3,200 direct labor-hours. The company paid its direct labor workers a total of $36,800 for this work, or $11.50 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $11.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,500 meals? 2. What is the standard labor cost allowed (SH SR ) to prepare 6,500 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor 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 (i.e., zero variance). Input all amounts as positive values.) Step by Step Solution
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