1) Modern Furniture Ltd. makes classic computer workstations. One of their products is a wooden workstation. The exterior is made of walnut, a high quality wood, but the interiors are made of pine, a less expensive wood. The budgeted direct material quantities and prices for one workstation are:

Rate per Cost for

Quantity Input Unit One Unit

Walnut 6 square metres $58/square metre $348

Pine 2 square metres $20/square metre $40

During the month of September 440 desks were produced. The actual material volume and costs were:

Total Total

Quantity Cost

Walnut 2,552 square metres $153,120

Pine 638 square metres $ 11,484

Calculate the direct materials mix and yield variances for the walnut. (4)