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