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, $115,000$ items were shipped to customers using $3,800$ direct labor$-$hours. The

company incurred a total of $$10,450$ in variable overhead costs.

According to the company's standards, $0\mathrm{.}04$ direct labor$-$hours are required to fulfill an order for one item

and the variable overhead rate is $$2\mathrm{.}80$ per direct labor$-$hour.

Required:

What is the standard labor$-$hours allowed $($SH$)$ to ship $115,000$ items to customers?

What is the standard variable overhead cost allowed $($SH $$ SR$)$ to ship $115,000$ 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.$)$