Logistics Solutions provides order fullfilment services for dot.com merchants. The company maintains warehouses that stock items carried by dot.com clients. When a client receives an order from a customer, the oder 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, 120,000 hours wer shipped to customers using 2,300 direct labor hours. The company inccurred a total of $7,360 in variable overhead costs.

According to the company's standards, 0.02 direct labor hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor hour.

Lagsacs Sousons proves oder neent sevices tor dotcom merchants The conpany maintans Accoding to the company's standands 02 diect tabor-hours ane required to