MFD Manufacturing makes wooden furniture. One of their products is a wooden dresser. The exterior and some of the shelves are made of oak, a highquality wood, but the interior drawers are made of pine, a less expensive wood. The budgeted direct materials quantities and prices for one dresser are

QuantityRate per Unit of InputCost for One Dresser

Oak............8 board feet..................$6 per board foot......................$48

Pine.........12 board feet....................2 per board foot........................24

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, MFD manufactures 3,000 dressers. Actual direct materials costs are:

Oak (23,180 board feet)................$141,398

Pine (37,820 board feet)...................68,076

Total actual direct materials cost......$209,474

Required

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

2. Calculate the total direct materials rate 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 the