Logistics Solutions provides orderfulfilment services for on merchants. Ine company' mAintains warehouses that stock items carrica oy its onunc 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 predetermined variable overhead rite based on direct In the most recent querter. 300,000 items were shipped to customers using S,S00 direct labour-hours. The company incurred a total of $37.860 in variable overhead costs and $23,200 in fixed overhead costs Accordine to the company's standerds, 0.02 direct lebour-hours are required to fulfill an order for one item and the variable overhead rate is S6.25 per direct labour-hour. Total budgeted fixed overhead cost was $23,600 for a planned shipping volume of 295,000 items. Fixed overnced 15 applied to cach item using cirect inou.... Required: 1. What variable overhead cost should have been incurred to fill the orders for the 300,000 items? How much does this cost vary from what was incurred? 2 Break the difference computed in pert (1) into a variable overhead spending variance and a variable overhead etciency variance. 3. Compute the predetermined fixed o Compute ine d br agel 1d the volume venence and assess them What additional information would you need to conclude that the predetermined rate for fixed cost used by the company is different from the value you calculated in part (3)