Exercise 10-3 (Static) Variable Overhead Variances [LO10-3] Logistics Solutions provides order fulfiliment services for dotcom merchants. The compamy maintains warehouses that stock items carned by its dotcom clients, When a client receives an order from a customer, the order is forwarded to Logistics. Solutions, which pulis the item from storage, packs it, and ships it to the customer. The corrpany uses a predetermined variable overhead rate based on direct labor-hours In the most recent month, 120000 items were shipped to customers using 2,300 direct labor-hours. The compary incurred a total of $7,360 in variable overthead costs. According to the company/s standards, 0.02 direct labor-hours are required to fulfill an order for one item and uhe variable overhead rate is 5925 per direct labor-hout. Required: 1. What is the standard labortiours allowed (SH) to ship 120000 rems to customers? 2. What is the standard vortable overhead cost allowed (SH x SR) to ship 120,000 itema to customers? 3. What is the variable overhead spending variance? 4. Whet is the variable overtsead rate variance and the variable overhead efficiency variance? (For tequirements 3 and 4 , indicate the effect of eoch variance by selecting "FN for fovorable. "us for unfovorable, and "None" for no etfect (h.e, zero variance). Input all amounts as positive values. Do not round ingermediote colcitations.)