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Business, 05.11.2019 03:31 mrnotsosmart744

Phoenix company maintains warehouses that stock items carried by its e-retailer clients. when one of phoenix’ clients receives an order from an online customer, the order is forwarded to phoenix. phoenix then pulls the item from the warehouse, packs it and ships it to the customer. phoenix uses a predetermined variable overhead rate based on direct labor-hours. according to the company’s records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct-labor hour. during december, phoenix shipped 120,000 orders using 4,600 direct labor-hours. the company incurred a total of $14,720 in variable overhead costs. part (a) what is the variable overhead spending variance during december? part (b) what is the variable overhead efficiency variance during december?

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