Materials variances: price, efficiency, mix, and yield. PDS Manufacturing makes wooden furniture. One of their products is a wooden dresser. The exterior and some of the shelves are made of oak, a high quality wood, but the interior drawers are made of pine, a less expensive wood. The budgeted direct materials quantities and prices for one dresser are:

That is, each dresser is budgeted to use 20 board feet of wood, comprised of 40% oak and 60% pine, although sometimes more pine is used in place of oak with no obvious change in the quality or function of the dresser. During the month of May, PDS manufactures 3,000 dressers. Actual direct materials costs are:

1. What is the budgeted cost of direct materials for 3,000 dressers?

2.Calculate the total direct materials price and efficiency variances.

3. For the 3,000 dressers, what is the total actual amount of oak and pine used? What is the actual direct materials input mix percentage? What is the budgeted amount of oak and pine that should have been used for the 3,000 dressers?

4. Calculate the total direct materials mix and yield variances. How do these numbers relate to the total direct materials efficiency variance? What do these variances tellyou?

Price per Unit of Input $6 per board foot 2 per board foot Cost for One Dresser Quantity 8 board feet 12 board feet $48 24 Oak Pine