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

question 79

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 of the overhead variances is:

• A) $13,888 F
• B) $13,888 U
• C) $38,462 F
• D) $38,462 U

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Definitions:

Metabolism

The successive transformations to which a substance is subjected from the time it enters the body to the time it or its decomposition products are excreted, and by which nutrition is accomplished and energy and living substance are provided.

Protein

A nutrient found in foods such as eggs, meat, fish, legumes, and soy products that provides energy to the body.

Fat

A natural oily substance occurring in animal bodies and plants, serving mainly as a reserve of energy.

Glucose

A simple sugar and an important energy source in living organisms, and the primary source of energy for the human brain.