Jupiter Co

Multiple Choice

Jupiter Co.applies overhead based on direct labor hours.The variable overhead standard is 4 hours at $12 per hour.During February,Jupiter Co.spent $113,400 for variable overhead.9,150 labor hours were used to produce 2,400 units.What is the over- or underapplied variable overhead?

A) $3,600 underapplied
B) $3,600 overapplied
C) $5,400 overapplied
D) $1,800 overapplied