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Logistics Solutions maintains warehouses that stock items carried by its dotcom clients. When a client recelves an order from a customer, the order is forwarded
Logistics Solutions maintains warehouses that stock items carried by its dotcom clients. When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulis the item from storace, packs it. and ships it to the customen The company uses a predetermined variable overhead rate based on drect iaborthours. In the most recent month, 200,000 items were shipped to customers using 8,900 direct labor-hours. The company incurred a total of $32,040 in variable overhead costs. According to the company's standards, 0.09 direct tobor-hour is required to fulfill an order for one item and the variable overthead rate is $3.65 per direct laborthour. Required: I Whit ts the stondard labor-hours allowed (SH) to ship 200,000 items to customers? 2. What is the standard varlable overheod cost allowed (SH4 * SP) to ship 200,000 items to custemers? 3. What is the variable overhead spending variance? 4. What are the variable overhead rate varlance and the varlable overhead efficiency variance? Note: 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, rero variance). Input all amounts as positive values, Do not round intermediate calculations
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