Loglstics Solutions provides order fulfillment services for dotcom merchants. The company maintains Warehouses...

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Accounting

Loglstics Solutions provides order fulfillment services for dotcom merchants. The company maintains
Warehouses that stock Items carrled by Its
dot.com clients. When a client recelves 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 varlable overhead rate based on direct labor-hours.
In the most recent month, 110,000 Items were shipped to customers using 3,500 direct labor-hours. The
company Incurred a total of $9,450 in varlable overhead costs.
According to the company's standards, 0.03 direct labor-hours are requlred to fulfill an order for one item and
the varlable overhead rate is $2.75 per direct labor-hour.
Required:
What is the standard labor-hours allowed (SH) to ship 110,000 items to customers?
What is the standard varlable overhead cost allowed (SH SR) to ship 110,000 items to customers?
What is the varlable overhead spending varlance?
What is the varlable overhead rate varlance and the varlable overhead efficlency varlance?
(For requirements 3 and 4, Indicate the effect of each varlance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as positive values. Do not round
intermedlate calculations.)
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