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please help! 5. Logistics Solutions provides order fulfillment services for dot com merchants. The company maintains warehouses that stock items carried by its dot.com clients.
please help! 5.
Logistics Solutions provides order fulfillment services for dot com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customet, 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 predeternified varfable overthead rate besed on direct laborhours: In the most recent month, 135,000 items were shipped to customers using 5,000 direct labor-hours. The company incurred a total of $14,750 in variable overhend costs. According to the companys standards, 0.04 direct laborthours are required to fulfilan order for one item and the variable overthead rate is $3.00 per direct tobor hour. Aequired: 1. What is the standard iaborthours allowed (SH) to ship 135,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 135,000 items to customers? 3. What is the varisble ovethead spending variance? 4. What is the varlable oyerhead 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 o effect (i.e., rero variance), Input all amounts as positive values. Do not round intermediate calculations.) Step by Step Solution
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