Logistics Solutions provides order fulfillment services fordot.commerchants. The company maintains warehouses that stock items carried by itsdot.comclients. 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, 170,000 items were shipped to customers using 7,100 direct labor-hours. The company incurred a total of $23,430 in variable overhead costs.

According to the companys standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.35 per direct labor-hour.

Required:
1.	According to the standards, what variable overhead cost should have been incurred to fill the orders for the 170,000 items? How much does this differ from the actual variable overhead cost?(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round labor-hours per item and overhead cost per hour to 2 decimal places.)

2.	Break down the difference computed in (1) above into a variable overhead rate variance and a variable overhead efficiency variance.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)