Bubbles Ltd, mass produce "fish ponds". The following information had been extracted from the company's standard cost sheet for the month of September based on the production of 18,000 fish ponds.

Plastic

10 metres at $4.50 per metre

Timber

3 metres at $3.00 per metre

Direct labour

3 hours at $6.00 per hour

Actual costs incurred during the month of September were:

• Purchased185,000 metres of plastic at $4.45 per metre
• Purchased50,000 metres of timber at $3.10 per metre
• Direct labour totalled $468,000 for 72,000 hours
• Used175,000 metres of plastic at $4.45 per metre
• Used48,000 metres of timber at $3.10 per metre

Based on the purchased quantity determine the direct material quantity (efficiency) variance of both materials (timber and plastic) making the fish ponds.

Question 4 options:

A)

$22,500 (U) plastic, $12,000 (F) timber

B)

$22,500 (U) plastic, $18,000 (U) timber

C)

$22,500 (F) plastic, $18,000 (F) timber

D)

$751,500 (U) plastic, $96,000 (F) timber