it View History Bookmarks Develop Window Help o Homework Help Exercise 10-3 Vari
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it View History Bookmarks Develop Window Help o Homework Help Exercise 10-3 Variable Overhead Variances [1010-3] provides order fulfilment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a clent recelives 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, 190.000 i $29,050 in variable overhead costs tems were shipped to customers using 8,300 direct labor-hours. The company incurred a total of According to the company's standards, 0.03 direct labor-hours are required to fufill an order for one item and the variable rate is $3.55 per direct labor-hour. Required 1. What is the standard labor-hours allowed (SH) to ship 190,000 items to customers? 2. What is the standard variable overhead cost alliowed (SH x SR) to ship 190,000 tems to customers? 3. What is the variable overhead spendling 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 varlance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (ie, 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 Variable overhead spending variance 4. Variable Variable overhead efficlency varianceExplanation / Answer
1) Standard quantity of labor-hours allowed 190,000*0.03 5700 answer 2) Standard variable cost allowed 5700*3.55 20235 3) Varaible overhead spending variance 29,050 - 20,235 8815 U 4) Variable overhead rate varaince (3.5 - 3.55)*8300 415 F 5) Variable overhead efficienvy variance (8,300 - 5,700)*3.55 9230 U
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