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, 175,000 items were shipped to customers using 7400 direct labor-hours. The company incurred a total of $24.790 in variable overhead costs. According to the company's standards, 0.04 direct labor hours are required to fulfill an order for one Item and the variable overhead rate is $3.40 per direct labor hout Required: 1. What is the standard labor hours allowed (SH) to ship 175,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 175.000 items to customers? 3. What is the variable overhead spending variance? 4 What is the variable overhead rate variance and the variable overhead efficiency varlance? (For requirements 3 and 4, indicate the effect of ench variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of labor hours allowed 2 Standard variable overhead cost allowed 3 Variable overhead spending variance 4. Variable overhead rate varianco Variable overhead efficiency variance 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. Direct materials Direct labor Standard Quantity or Hours 7.50 pounds 0.80 hours Standard Price or Rate $2.40 per pound $7.00 per hour Standard Cost $18.00 $ 5.60 During the most recent month, the following activity was recorded a. 13,250.00 pounds of material were purchased at a cost of $2.20 per pound b. All of the material purchased was used to produce 1,500 units of Zoom. c. 1,000 hours of direct labor time were recorded at a total labor cost of $9,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month (For all requirements, indicate the effect of each variance by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (.e., zero variance). Input all omounts os positive values. Round your intermediate calculations to the nearest whole dollar) 1 Materials price variance Matonals quantity variance Labor rate vanance Labor efficiency variance 2 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: Standard Quantity or Hours 5.90 pounds 0.50 hours Standard price on llate $2.50 per pound $8.50 per hour Standard Cost $14.75 $.4.25 Direct materials Direct labor During the most recent month the following activity was recorded: Eleven thousand four hundred pounds of material were purchased at a cost of $2.40 pet pound, b. The company produced only 1140 units, using 10,260 pounds of material. (The rest of the material purchased remained in row materials inventory) c. 670 hours of direct lobortime were recorded at a total labor cost of $8,040 Required: Compute the materials price and quantity variances for the month (Indicate the effect of ench vorionce by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (1.o., zero variance). Input all amounts os positive values. Do not round intermediate calculations.) Materials price variance Matonais quantity variance
