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 spending variance?
A) $23,850 U
B) $23,850 F
C) $14,280 F
D) $14,280 U

Question

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 spending variance?
A) $23,850 U 
B) $23,850 F 
C) $14,280 F 
D) $14,280 U

Quizplus · Accepted Answer

The Answer of 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 spending variance?
A) $23,850 U 
B) $23,850 F 
C) $14,280 F 
D) $14,280 U

Ritchie Company Ritchie Company Uses a Standard Cost System for Its