Union Company uses a standard cost accounting system. The following overhead costs and production data are available for August: Standard fixed overhead rate $1.00 per hour Standard variable overhead rate $4.00 per hour Denominator activity 40,000 hours Actual hours 39,500 hours Standard hours allowed for output 39,000 hours Overapplied overhead $2,000 The total amount of overhead applied to work in process for August would be: $195,000. $197,000. $197,500. $199,500.