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

question 72

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 fixed component of the predetermined overhead rate is closest to:

• A) $8.25 per machine-hour
• B) $12.38 per machine-hour
• C) $5.69 per machine-hour
• D) $8.54 per machine-hour

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Definitions:

Promotional Mix

The combination of marketing tools used by a business to effectively promote its products or services, including advertising, sales promotions, public relations, personal selling, and direct marketing.

Sales Promotion

Short-term marketing strategies aimed at stimulating consumer demand or improving product availability to boost sales, such as discounts, coupons, or special offers.

Public Relations

The method of strategic communication that fosters beneficial connections between organizations and their audience.

Encoding

The process of converting ideas or messages into verbal, written, or visual formats to communicate effectively with a target audience.