Logistics solutions provides order fulfillment services fordot. com merchants. the company maintainswarehouses that stock items carried by its dot. comclients. when a client receives an order from a customer, the orderis forwarded to logistics solutions, which pulls the item fromstorage, packs it, and ships it to the customer. the company uses apredetermined variable overhead rate based on directlabor-hours.

in the most recent month, 120,000items were shipped to customers using 2,300 direct labor-hours. thecompany incurred a total of $7,360 in variable overhead costs.

according to the companyâsstandards, 0.02 direct labor-hours are required to fulfill an orderfor one item and the variable overhead rate is $3.25 per directlabor-hour.

required:
1.
according to the standards, what variable overhead cost shouldhave been incurred to fill the orders for the 120,000 items? howmuch does this differ from the actual variable overhead cost? (indicate the effect of each variance by selecting "f" forfavorable, "u" for unfavorable, and "none" for no effect (i. e.,zero variance). round labor-hours per item and overhead cost perhour to 2 decimal places.)

number of items shipped
standard direct labor-hours peritem
total direct labor-hoursallowed
standard variable overhead costper hour
total standard variableoverhead cost
actual variable overhead costincurred
total standard variableoverhead cost
total variable overheadvariance $0
2.
break down the difference computed in (1) above into a variableoverhead rate variance and a variable overhead efficiency variance.(indicate the effect of each variance by selecting "f" forfavorable, "u" for unfavorable, and "none" for no effect (i. e.,zero

variableoverhead rate variance
variableoverhead efficiency variance