(Appendix 10A) Arca Incorporated Makes a Single Product--A Critical Part

question 132

Multiple Choice

(Appendix 10A) 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 total manufacturing overhead is underapplied or overapplied by how much?

• A) $38,462 Underapplied
• B) $13,888 Underapplied
• C) $38,462 Overapplied
• D) $13,888 Overapplied

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Definitions:

Asset

An asset is anything of value or a resource of value that can be owned or controlled to produce positive economic value for an individual or organization.

Permeability

The capability of a porous material to allow fluids to pass through it, crucial in determining the flow of water and hydrocarbons in geology.

Porosity

A measure of how much of a rock, soil, or sediment's volume is occupied by voids or pores, affecting its ability to hold fluids.

Confined Aquifer

An aquifer that is separated from Earth’s surface by materials with low permeability.