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

question 42

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 fixed overhead budget variance is:

• A) $57,675 U
• B) $15,000 F
• C) $15,000 U
• D) $57,675 F