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Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 21...

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Question

Accounting

Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 21 hours at $29 per hour. During February, Jupiter Co. spent $303,400 for variable overhead. 10,400 labor hours were used to produce 500 units. What is the over- or underapplied variable overhead?

Multiple Choice

  • $2,200 underapplied

  • $2,200 overapplied

  • $2,900 overapplied

  • $1,100 overapplied

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