Business
Business, 06.11.2019 00:31, HalpMehPlz

Logistics solutions provides order fulfillment services for dot. com merchants. the company maintains warehouses that stock items carried by its dot. com clients. when a client receives an order from a customer, the order is forwarded to logistics 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-hours.

in the most recent month, 120,000 items were shipped to customers using 4,100 direct labor-hours. the company incurred a total of $11,480 in variable overhead costs.

according to the company’s standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $2.85 per direct labor-hour.

(1) what is the standard labor-hours allowed (sh) to ship 120,000 items to customers?
(2) what is the standard variable overhead cost allowed (sh × sr) to ship 120,000 items to customers?
(3) what is the variable overhead spending variance?
(4) what is the variable overhead rate variance and the variable overhead efficiency variance?

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