1. Standard quantity of labor hours allowed = 190,000 items * 0.03 direct labor hours per item
= 5,700
2. Standard variable overhead cost allowed = 5,700 labor hours allowed * $3.55 per labor hour
= $20,235
3. Variable overhead spending variance = Actual overhead - Standard variable overhead cost allowed
= $29,050 - $20,235
= $8,815 Unfavorable
4. Variable overhead rate variance = Actual overhead - (Actual hours * Standard rate)
= $29,050 - (8,300 * 3.55)
= $415 Favorable
Variable overhead efficiency variance = (Actual hours * Standard rate) - Standard variable overhead cost allowed
= ($8,300 * 3.55) - $20,235
= $9,230 Unfavorable
Exercise 10-3 Variable Overhead Variances [LO10-3] Logistics Solutions provides order fulfillment services for dot.com merchants. The...
EXERCISE 10-3 Variable Overhead Variances LO10-3 Logistics Solutions provides order fulfillment services for dot.com merchants. The company main- tains 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...
Exercise 10-3 Variable Overhead Variances (LO10-3] 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, 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, 135,000 items were shipped to customers...
Exercise 10-3 Variable Overhead Variances (LO10-3] 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, 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, 115,000 items were shipped to customers...
Exercise 10-3 Variable Overhead Variances [LO10-3] 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, 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, 130,000 items were shipped to customers...
Exercise 10-3 Variable Overhead Variances (LO10-3] 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, 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, 195,000 items were shipped to customers...
2 Exercise 10-3 Variable Overhead Variances [LO10-3] Logistics Solutions provides order fulfillment services for dot.com merchants. The company malntains warehouses that stock Items carried by Its dot.com cllents. When a clilent recelves an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and shlips it to the customer. The company uses a predetermined variable overhead rate based 12.5 points 0841 on direct labor-hours. dn the most recent month, 120,000 items...
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, 110,000 items were shipped to customers using 3,500 direct labor-hours. The company...
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, 190,000 items were shipped to customers using 8,300 direct labor-hours. The company...
Exercise 10-3 (Algo) Variable Overhead Variances (LO10-3) 25 points 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, 165,000 items were...
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 2,300 direct labor-hours. The company...