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

question 130

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 variable component of the predetermined overhead rate is closest to:

• A) $0.44 per machine-hour
• B) $1.29 per machine-hour
• C) $0.33 per machine-hour
• D) $0 .44 per machine-hour

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Somatic

Relating to the body, especially as distinct from the mind or emotions; often used in reference to bodily symptoms with no apparent physical cause.

Parasympathetic

The part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Cortex

The Cortex is the outermost layer of the brain's cerebrum, involved in higher brain functions such as thought, memory, and decision making.