Answer the following question(s)using the information below.Eco Furniture Ltd.makes wooden furniture.One of their products is a wooden desk.The exterior is made of walnut, 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 desk are:
During the month of November 600 desks were produced.The actual material volume and costs were:

-What is the direct materials mix variance for pine?
A)$9,250 F
B)$6,500 U
C)$7,125 U
D)$8,650 F
E)$5,750 U

Question

Answer the following question(s)using the information below.Eco Furniture Ltd.makes wooden furniture.One of their products is a wooden desk.The exterior is made of walnut, 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 desk are:
  During the month of November 600 desks were produced.The actual material volume and costs were:
 
-What is the direct materials mix variance for pine?
A)$9,250 F 
B)$6,500 U 
C)$7,125 U 
D)$8,650 F 
E)$5,750 U

Quizplus · Accepted Answer

Direct materials mix variance for pine = (Actual quantity of pine used - Budgeted quantity of pine used) x Budgeted price of walnut
= (4,800 - 5,400) x $1.25
= $7,125 U (unfavorable)

The best choice(s) cannot be determined with the given information.

Answer the Following Question(s)using the Information Below