Homework 19 5 Exercise 10-3 (Algo) Variable Overhead Variances (L010-3] 08 points Logistics Solutions provides order Fulfillment services for dot com merchants. The company maintains warehouses that som carried by its dot com clients. When a client receives an order from a customer the order is forwarded to Logistics Solutionswhich pulls the item from storage, packs and ships it to the customer. The company uses a predetermined variable overhead rate med on direct labor-hours. In the most recent month, 125.000 items were shipped to customers using 4.400 direct isbot-hours. The company incurred to of $12.540 in variable overhead costs. According to the company's standards, 0.04 direct labor hours are required to fulfill an order for one tom and the valuable owerhead rate is $2.90 per direct labor hour. Required: 1. What is the standard labor hours allowed (SH to ship 125.000 items to customers 2. What is the standard variable overhead cost allowed ISH SR) to ship 125.000 hems to customers! 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead officiency 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 cl.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) References 1. Standard quantity of labor-hours allowed 2. Standard Variable overhead cost slowed a Vanable overhead spending verance 4. Variable overhead rate variance 4. Variable overhead efficiency variance