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Logistics Solutions provides order fulfilment services for dot.com merchants. The company malntalns warehouses that stock items carrned by its dot.com clients. When a client
Logistics Solutions provides order fulfilment services for dot.com merchants. The company malntalns warehouses that stock items carrned 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 varlable overhead rate based on direct labor-hours In the most recent month, 165,000 items were shipped to customers using 6,800 direct labor-hours. The company incurred a total of $22.100 in variable overhead costs. According to the company's standards, 004 direct labor-hours are required to fuifili an order for one item and the varlable overhead rate is $3.30 per direct labor-hour Required: 1 What is the standard labor-hours allowed (SH) to ship 165,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 165,000 items to customers? 3. What is the vanable overhead spending variance? 4. What is the varlable overhead rate varlance and the variable overhead efficlency variance? (For requirements 3 and 4, Indicate the effect of each varlence by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance), Input all amounts es positive values. Do not round Intermedlate calculations.) 1 Standard quantity of labor-hours allowed 2 Standard variable overhead cost allowed 3. Variable overhead spending variance 4 Vanable overhead rate variance 4 Variable overhead efficiency variance
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