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Exercise 9-6 (Algo) Variable Overhead Variances [LO9-6] Logistics Solutions provides order fulfilment services for dotcom merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulls the litem 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, 155,000 items were shipped to customers using 6,000 direct labor-hours. The company incurred a total of $17,400 in variable overhead costs: According to the company's standards, 0.04 direct labor-hours are required to fulnill an order for one item and the variable overhead rate is $3.00 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 155,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 155,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the vatiable overhead efficlency 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 (i.e., zero varlance). Input all amounts as positive values. Do not round intermediate calculations.)