Ryde company produces a number of chemical pesticide products for agricultural producers. Ryde offers farmers an...

  

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Ryde company produces a number of chemical pesticide products for agricultural producers. Ryde offers farmers an extensive range of premium products and expertise., and is committed to research and developing more sustainable and environmentally friendly solutions to protecting farmers' crops. You are employed at Ryde as a management accountant, and one of your key duties is to conduct an annual review of actual costs to budget. As part of this task, you are currently looking at Ryde's ProPowder product - a dust that can be used to kills and controls some of the major pests and diseases on tomatoes and vegetables. The following standard costs for the ProPowder product were set at the beginning of the last financial year. (5 kgs @ $2.00 per kg) (1.5 hrs @ $12.00 per hr) $10.00 $18.00 Direct materials Direct labour Actual outcomes for the ProPowder product were as follows: Units produced Materials purchased and used Direct labour 50,000 245,000 kgs 90,000 hrs $2.10 per kg $13.20 per hr Required: (13 marks in total) (a) From the above information, compute the: (i) (ii) (ii) (iv) Direct materials price variance. (1 mark) Direct materials quantity variance. (1 mark) Direct labour rate variance. (1 mark) Direct labour efficiency variance. (1 mark) Ryde company produces a number of chemical pesticide products for agricultural producers. Ryde offers farmers an extensive range of premium products and expertise., and is committed to research and developing more sustainable and environmentally friendly solutions to protecting farmers' crops. You are employed at Ryde as a management accountant, and one of your key duties is to conduct an annual review of actual costs to budget. As part of this task, you are currently looking at Ryde's ProPowder product - a dust that can be used to kills and controls some of the major pests and diseases on tomatoes and vegetables. The following standard costs for the ProPowder product were set at the beginning of the last financial year. (5 kgs @ $2.00 per kg) (1.5 hrs @ $12.00 per hr) $10.00 $18.00 Direct materials Direct labour Actual outcomes for the ProPowder product were as follows: Units produced Materials purchased and used Direct labour 50,000 245,000 kgs 90,000 hrs $2.10 per kg $13.20 per hr Required: (13 marks in total) (a) From the above information, compute the: (i) (ii) (ii) (iv) Direct materials price variance. (1 mark) Direct materials quantity variance. (1 mark) Direct labour rate variance. (1 mark) Direct labour efficiency variance. (1 mark)

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