Jupiter Co

question 6

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 variable overhead rate variance?

• A)$3,600 unfavorable
• B)$3,600 favorable
• C)$5,400 favorable
• D)$1,800 favorable

---

Definitions:

Event

A specific outcome or type of outcome that can occur in a situation or experiment.

Condo Sales

The transactions involving the buying and selling of condominium units.

Interest Rates

The cost of borrowing money or the return on investment, usually expressed as a percentage of the principal over a period of one year.

Prior Probability

The probability of an event or outcome before new data is collected, often used in Bayesian statistics.