Question: will rate Logistics Solutions provides order fulfiliment services for dotcom merchants. The company maintains warehouses that stock items carried by its dotcom clients. When a
Logistics Solutions provides order fulfiliment services for dotcom merchants. The company maintains warehouses that stock items carried by its dotcom clients. When a client recelves an order from a customer, the order Is forwarded to Loglstics 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-hrouts In the most recent month. 125,000 items were shipped to customers using 4,400 direct labor hours. The company incurred a total of $12.540 in vatiable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfil an ordec for one item and the variable overhead rate is $2.90 pet ditect labor-houc. Required: 1. What is the standard labor-hours aliowed (SH) to ship 125.000 items to customers? 2. What is the standard variable ovethead cost allowed (SH SR) to ship 125,000 lfems to customers? 3. What is the variable oveihead spending variance? 4. What is the varlable overhead rate variance and the varkble ovetheadi efficiency variance? (For requirements 3 and 4 , indicate the effect of each varionce by selecting " F " for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive volues. Do not round intermediote calculations.)
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