70.2K

Verified Solution

Link Copied!

Logistics Solutions provides order fulfilment services for dot com meichants. The company maintains warehouses that stock items carried by its dot com clients. When a client receives an order from a customec, 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, 195.000 items were shipped to customers using 8,600 direct labor-hours. The company incurred a total of $30,530 in varlable overhead costs According to the company's standards, 0.04 direct labor-hours are required to fulfil an order for one item and the variabie overhead rate is $360 per direct labor-hour: Required: 1. What is the standard labor-hours allowed (SH) to ship 195.000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 195,000 items to customers? 3. What is the variable ovehead spending variance? 4. What is the varlable overhead rate variance and the variable ovethead efficiency varlance? (For requirements 3 and 4 , indicate the effect of each variance by selecting "F" for fovorable, " U " for unfovorable, and "None" for no effect (i.e., zero vorionce). Input all omounts os positive volues. Do not round intermediate caleulotions.)

Answer & Explanation Solved by verified expert

See Answer