Ritchie Company Ritchie Company Uses a Standard Cost System for Its

question 204

Multiple Choice

Ritchie Company Ritchie Company uses a standard cost system for its production process. Ritchie Company applies overhead based on direct labor hours. The following information is available for July:
Refer to Ritchie Company Using the three-variance approach, what is the efficiency variance?

• A) $11,770 F
• B) $2,200 F
• C) $7,975 U
• D) $5,775 U

---

Definitions:

Gross Revenues

The total income generated from sales of goods or services before any expenses are deducted.

Freestanding Inserts

Advertisements inserted into newspapers or postal mailings, separate from the main content, usually containing coupons or special offers.

Online Coupon Redemption

The process through which consumers apply digital or printable coupons to receive a discount or special offer when making a purchase online.

Inquiry Tests

Investigation methods used to gather information or feedback about products, services, or experiences from potential or actual users.