CORRECT ANSWER IS C. 5,700 Units

Jefferson Inc. has the following information for the month of September. The company applies OH costs using standard machine hours as the allocation base $ $ Actual Results Actual variable OH costs Actual fixed OH costs Actual machine hours Actual output 2,320 4,200 1,180 MHS 1,100 units Budget (for 1,000 units) Variable OH $ 2,000 Fixed OH $ 4,000 Budged machine hours 1,000 MHS 2 The total manufacturing overhead is underapplied or overapplied by how much? A. Overapplied by $ 200 B. Underapplied by $ 120 C. Underapplied by $ 320 D. Overapplied by $ 80 E. None of the above