Check my work 3 Logistics Solutions provides order fulfillment services for dot.
ID: 2519622 • Letter: C
Question
Check my work 3 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, whiclh 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. 10 points In the most recent month, 160,000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs. eBook 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 $3.25 per direct labor-hour Hint Print Required: References1. What is the standard labor-hours allowed (SH) to ship 160,000 items to customers? 2. What is the standard variable overhead cost allowed (SH x SR) to ship 160,000 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? (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 variance). Input all amounts as positive values. Do no round intermediate calculations.) 1. Standard quantity of labor-hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance Variable overhead efficiency varianceExplanation / Answer
Rreq 1. Actual output: 160,000 items Std labour hour per itme; 0.03 per itme Std labour hours allowed for actual itmes: 160,000 itmes @ 0.03 = 4800 hours Req 2: Std variable Oh rate per hour: $ 3.25 per hour Std Variable OH cost for actual output: 4800 hours@3.25 = $15,600 Req 3: Variable OH spending variance= Std variable oH for actual output - Actual variable OH 15600 -20800 = $ 5200 U Req 4: Variable OH rate variance = (Actual hours *Standard rate per hour ) - Actual variable OH 6500 hours*3.25 - $ 20800 = $ 325 F Variable OH efficiency variance = Std rate per hour (Std hours-Actual hours) 3.25 (4800 -6500) = $ 5525 U