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

Question

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

Quizplus · Accepted Answer

11eacbfc_c7fa_2d19_8ffe_cdd5c9afc209_TB7552_00

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