Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me solve this question. I need help. Here is the complete question. 1. value: 20.00 points Logistics Solutions provides order fulfillment services for

Please help me solve this question. I need help. Here is the complete question.

image text in transcribed
1. value: 20.00 points 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 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 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 fulll an order for one item and the variable overhead rate is $2.85 per direct labor-hour. Required: 1. According to the standards, what variable overhead cost should have been incurred to ll the orders for the 120,000 items? How much does this differ from the actual variable overhead cost? (Round labor- hours per item and overhead cost per hour to 2 decimal places.) Number of items shipped Standard direct labor-hours per item Total direct labor-hours allowed Standard variable overhead cost per hour Total standard variable overhead cost Actual variable overhead cost incurred Total standard variable overhead cost Total variable overhead variance 2. Break down the difference computed in (1) above into a variable overhead rate variance and a variable overhead efciency variance. (Indicate the effect of each variance by selecting \"PI for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead rate variance _ - Variable overhead efciency variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

23. Alternatives

Answered: 1 week ago