Ritchie Company Ritchie Company Uses a Standard Cost System for Its

question 95

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 volume variance?

• A) $13,260 U
• B) $2,640 F
• C) $6,930 U
• D) $0

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Definitions:

Operating Activities

Day-to-day business functions involved in running a company, typically reflected in the cash flow statement.

Dividends

Payments made by a corporation to its shareholder members, typically from profits or reserves.

Net Profit Margin

A financial metric that measures how much of every dollar of revenues is translated into profits, after all expenses are deducted.

Earnings Per Share

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares.