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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, 150,000 items were shipped to customers using 5,900 direct labor-hours. The company incurred a total of $18,290 in variable overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.15 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 150,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 150,000 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 (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.) 1. 4,500 2. Standard quantity of labor-hours allowed Standard variable overhead cost allowed Variable overhead spending variance Variable overhead rate variance 3. U 4. $ 295 F Variable overhead efficiency variance $ 4.410 u Required information [The following information applies to the questions displayed below.) CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 3,000,000 $ 150,000 $ 750,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations.) Return on investment (ROI) 96 Required information [The following information applies to the questions displayed below.) CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 3,000,000 $ 150,000 $ 750,000 The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations.) Return on investment (ROI) %

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