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

Multiple Choice

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 overhead efficiency variance is:

A) $258 U
B) $88 F
C) $88 U
D) $258 F