80.2K

Verified Solution

Link Copied!

6 1 posts Logistics Solutions provides order fulfilment 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 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 2.300 direct labor-hours. The company incurred a total of $7.360 in variable overhead costs According to the company's standards. 002 direct lobor hours are required to fulfil an order for one item and the variable overhead rate is $3.25 per direct labor-hour Required: 1. What is the standard tabor-hours allowed (SH) to ship 120,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 120,000 items to customers? 3. What is the variable 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 ie..zere variance). Input all amounts as positive values. Do not round intermediate calculations) Print fo 1 Standard quantity of bor hours lowed 2. Standard variable overnad cost lowed Variable overhead speiding variance 4 Variable overhead rate variance Variable overhead efficiency variance

Answer & Explanation Solved by verified expert

See Answer