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Logistics Solutions provides order fuifiliment services for dotcom merchants. The company maintains warehouses that stock items carried by its dotcom cllents. When a client recelves
Logistics Solutions provides order fuifiliment services for dotcom merchants. The company maintains warehouses that stock items carried by its dotcom cllents. When a client recelves an order from a customer, the order is fonwarded to Logistics Solutions, which puils 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, 115,000 items were shipped to customers using 3,800 drect labor-hours. The company incutred a total of $10,450 in variable overhead costs According to the company's standards, 0.04 direct labor-hours are required to fuifil an order for one item and the varlable overhead rate is $2.80 per direct laborthour Required: 1. What is the standard laborhours allowed (SH) to ship 115,000 items to customers? 2. What is the standard varlable overhead cost allowed (SH * SR) to ship 115,000 ltems to customers? 3. What is the varlable overhead spending variance? 4. What is the varlable overhead rate variance and the varlable overhead efficiency variance? (For requirements 3 and 4 , Indicate the effect of each varlance by selecting "F" for fovorable, "U" for unfovorable, and "None" for no effect (1.e., zero variance). Input all amounts os positive volues. Do not round intermediate calculotions.)
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