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Texas A&M University-Commerce Operations And Supply Chain Management Assignment Help - e-commerce merchants


Question - Order Up, Inc. provides order fulfillment services for e-commerce merchants. The company maintains
warehouses that stock items carried by its clients. In the most recent month, 140,000 items were
shipped to customers using 5,800 direct labor-hours. The company incurred a total of $15,950 in
variable overhead costs. According to the company’s standards, 0.04 direct labor-hours are required
to fulfill an order for one item. For the year, Order Up expects to incur 60,000 direct labor hours and
$168,000 of variable overhead costs.
Required: Compute variable overhead spending variance and variable overhead efficiency variance.

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