Logistics Solutions provides order fulfiliment services for dot.com merchants. The company 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 pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined varlable overhead rate based on direct labor-hours. In the most recent month, 185,000 items were shipped to customers using 8,000 direct labor hours. The company Incurred a total of \$27,600 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one ltem and the variable overhead rate is $3.50 per direct labor-hour. Required: 1. What is the standard labor hours allowed (SH) to ship 185,000 items to customers? 2 What is the standard variable overhead cost allowed (SH * SR) to ship 185,000 items to customers? 3. What is the varlable overhead spending varlance? 4. What is the variable overhead rate variance and the variable overhead efficiency varlance? (For requirements 3 and 4 , indicete the offect of each variance by selecting "F" for fovorable, "UP for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below. During the most recent month, the following activily was recorded: a. Ten thousand elght hundred pounds of material were purchased at a cost of $290 per pound. b. The company produced only 1,080 units, using 9,720 pounds of materlal. (The rest of the material purchased remained in raw materials inventory.) c. 532 hours of direct labor time were recorded at a total labor cost of $6,384. Required: Compute the materlals price and quantity varlances for the month. (Indicate the eflect of each variance by salecting "F" for fovorable, "U" for unfavorablo, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round Intormediote calculotions.) Quality Motor Company is an auto repalr shop that uses standards to control its labor time and labor cost. The standard tabor cost for a motor tune-up is given below. The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 60 tune-ups were completed during the week, and the controller recalls the following varlance data relating to tune-ups: LaborratevarianceLaborspendingvarianceS50F$55u Required: 1. Determine the number of actual labor-hours spent on tune-ups during the weck. 2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places)
