Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock...
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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 cllents. When a client recelves an order from a customer, the order is forwarded to Logitics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead tate based on direct labor-hours: In the most recent month, 205,000 items were shipped to customers using 9.200 direct labor hours. The comparty incurred a total of $33.580 in varlable overhed costs. According to the company's standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $370 per difect labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 205,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 205,000 ltems to customers? 3. What is the variable overticad spending varlance? 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 (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
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