Logisucs soiutons provioes oraer rumument services for ootcom mercnants. ine company maintains warenouses that stock...

90.2K

Verified Solution

Question

Accounting

image
Logisucs soiutons provioes oraer rumument services for ootcom mercnants. ine company maintains warenouses that stock items carried by its dot com clents. When a client receives an order from a customer, the order is forwarded to togistics Solutions, which putls 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, 125,000 iterns were shipped to customers using 4,400 direct labor-hours. The company incurred a total of $12,540 in variable overhead costs According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $290 per direct labor-hour Required: 1. What is the standard labor-hours allowed (SH) to ship 125,000 items to customers? 2. What is the standard variable overhead cost allowed (SH - SR) to ship 125,000 items to customers? 3. What is the variable overhead spending variance? 4 . What is the variable overhead rate variance and the varable overnead efficiency variance? Note: For requirements 3 and 4 , indicate the effect of each vorionce by selecting " F " for fovoroble, "U" for unfovorable, and "None" for no effect (i.e., zero variance). Input all omounts os positive values. Do not round intermediote calculations

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students