Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. logistics solutions provides order fulfillment ser

Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock...

70.2K

Verified Solution

Question

Accounting

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, 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 companys standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour.
Required:
1. What is the standard labor-hours allowed (SH) to ship 120,000 items to customers?
2. What is the standard variable overhead cost allowed (SH \times SR) 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?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Ridgecrest Electric manufactures electric motors. It competes and plans to grow by selling high-quality motors at...

Accounting
Q

Marriott Hotel data breach, explain with a report on it that answers the following question; When...

Advance Math
Q

In developing packaging, must there be a trade- off between efficiency and effectiveness? If so, what factors...

General Management
Q

The Silk Road connected China to Europe India Africa Persia

Biology
Q

Comment on the quotation below from a climatologist What I think is our best determination...

Statistics
Q

and or subtraction with multiplication method Select the best answer with the format x y...

Algebra
Q

Some activities that are otherwise prohibited under OFAC sanctions may be allowed under a...

Accounting
Q

Sequoia (S Corporation) purchased the rights to cut timber on several tracts of...

Accounting
Q

ABC Construction has the following contract: Contract price 1,000,000 Cost incurred cost to complete Dec...

Accounting
Q

06 Which is more affected by extreme observations, the mean or median? And how about...

Accounting
Q

To what type of risk is a high-yield bond fund exposed? Default ...

Finance
Q

The Omani Company has two bond issues outstanding. Both bonds pay OMR (1000) annual interest...

Finance