Jupiter Co

question 29

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

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