Wissota Co. applies overhead based on direct labor hours. The variable overhead standard is 4 hours at $6 per hour. During February, Wissota Co. spent $56,700 for variable overhead. 9,150 labor hours were used to produce 2,400 units. What is the over-or underapplied variable overhead?
a. $1,800 underapplied
b. $1,800 overapplied
c. $2,700 overapplied
d. $900 overapplied