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. 145.000 items were shipped to customers using 5.600 direct labor-hours. The company incurred a total of $17,080 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 $3.10 per direct labor-hour, Required: 1. What is the standard labor-hours allowed (SH) to ship 145,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 145,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency 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 (ie, 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 variance 4. Variable overhead licency variann per Hour Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Standard Rate Standard Hours Cost 30 minutes $ 6.40 $ 3.20 During August 10,360 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $65,268 for the month Required: 1. What is the standard labor hours allowed (SH) to makes 19,400 Jogging Mates? 2. What is the standard labor cost allowed (SHSR) to make 19,400 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.10 per direct labor hour. During August, the company incurred $49.728 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month, (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard labor hours allowed 2. Standard labor cost allowed 3. Labor spending variante 4. Laborrate variance 4. Labor efficiency variance 5. Variable overhead rate variance 5. Variable overhead officiency variance Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy Direct materials: 7 microns per toy at $0.35 per micron Direct labor: 12 hours per toy at $7.30 per hour During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows: Direct materials 74,000 microns were purchased at a cost of $0.31 per micron, 32,875 of these microns were still in inventory at the Direct labor 6,040 direct labor-hours were worked at a cost of $46,508. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. end of the month ta. Material price variance to Material quantity variance 1b. Laborrate variance 1b. Labor efficiency variance
