19

Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 17 hours at $25 per hour. During February, Jupiter Co. spent $260,400 for variable overhead. 9,800 labor hours were used to produce 1,100 units. What is the variable overhead rate variance?

Multiple Choice

• $7,700 favorable

• $15,400 unfavorable

• $23,100 favorable

• $15,400 favorable