Logistics Solutions provides order fulfillment services for

dot.com merchants. The

company maintains warehouses that stock items carried by its

dot.com clients. When a

client receives 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, $120,000$ items were shipped to customers using $2,300$ direct

labor$-$hours. The company incurred a total of $$7,360$ in variable overhead costs.

According to the company's standards, $0\mathrm{.}02$ direct labor$-$hours are required to fulfill an

order for one item and the variable overhead rate is $$3\mathrm{.}25$ per direct labor$-$hour.

Required:

What is the standard labor$-$hours allowed $($SH$)$ to ship $120,000$ items to customers?

What is the standard variable overhead cost allowed $(SHSR$ to ship $120,000$ items to

customers?

What is the variable overhead spending variance?

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 $($i$.$e$.,$ zero variance$).$ Input all

amounts as positive values. Do not round intermediate calculations.$)$