Arca Incorporated Makes a Single Product-A Critical Part Used in Commercial

question 171

Multiple Choice

Arca Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The predetermined overhead rate is closest to:

• A) $8.69 per machine-hour
• B) $10.47 per machine-hour
• C) $6.98 per machine-hour
• D) $13.03 per machine-hour

---

Definitions:

Scapula

The scapula, or shoulder blade, is a large, flat, triangular bone located in the upper back on each side of the vertebral column.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting the scapula to the bones of the forearm.

Xiphoid Process

The smallest and lowermost part of the sternum, varying in shape and size, often cartilaginous in early life before ossifying in adulthood.

Stress Fracture

A small crack in a bone often caused by overuse or repetitive force, most common in weight-bearing bones of the lower leg and foot.