=+11-52 KK Materials variances: price, efficiency, mix and yield (Appendix 11-1)

PDS Manufacturing makes wooden furniture. One of their products is a wooden dresser. The exterior and some of the shelves are made of Tasmanian 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:

Quantity Price per unit of input Cost for one dresser Tasmanian oak 8 linear metres $6 per linear metre $48 Pine 12 linear metres 2 per linear metre 24