Exercise 10-3 (Static) Variable Overhead Variances [LO10-3] Logistics Solutions provides order futiliment services for dot com merchants. The compony maintains waichouses that stack tems carried by its dot com clients. When a cilentrecelves an order from a customer, the order is forwadded to Loglsticr 5 otutions, whichs pulls the item from storage, packs it, and ships it to the customet. The company uses a predetermined variabie overhe ad raie based on direct labor-hours. In the most recent month, 120,000 items wore shipped to customers using 2,300 direct labor-hours. The company incurred a iotal of $7.360 in variable owerhead costs: According to the company's standards, 0.02 direct labor-hours are required to fulill an order for one item and the variable overthead 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 overthead cost allowed (SH, * SR) to ship 120,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overheod rate variance and the variable overhead efficiency variance? (For requirements 3 and 4 , Indicate the effect of each variance by selecting "F" for favorabic, "U* for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)