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

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 overhead rate variance is:

A) $18,955 F
B) $19,125 F
C) $19,125 U
D) $18,955 U