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Logistics Solutions provides order fulfilment services for dotcom merchants. The company maintains warehouses that stock items carried by its dot com clients. When a client

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Logistics Solutions provides order fulfilment services for dotcom merchants. The company maintains warehouses that stock items carried by its dot com clients. When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulis 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, 120,000 items were shipped to customers using 4,100 direct labor-hours. The company incurred a total of $11,480 in variable overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfil an order for one item and the variable overhead rate is $2.85 per direct labor-hour: Required: 1. What is the standard labor-hours allowed (SH) to ship 120,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 120,000 items to customers? 3. What is the varlable 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 (6.e, zero variance). Input all amounts as positive values. Do not round intermediate caiculations.) 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: During August, 10,290 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $60,711 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19.200 Jogging Mates? 2. What is the standard labor cost allowed (SH * SR ) to make 19,200 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 $4,30 per direct laborihour. During August, the company incurred $51,450 in variable manufacturing overhead cost. Compute the variable overhead rate and efliciency varlances 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 (i.e., zero variance). Input all omounts as positive values. Do not round intermediate calculations.)

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