Wings Ltd, mass produce "suit cases" for travel in a variety of colours, but only in one design. The following information had been extracted from the company's standard cost sheet for the month of March based on the production of 18,000 cases.

Plastic= 10 metres at $4.50 per metre

Leather= 3 metres at $3.00 per metre

Actual costs incurred during the month of March were:

• Purchased185,000 metres of plastic at $4.45 per metre
• Purchased50,000 metres of leather at $3.10 per metre
• Used175,000 metres of plastic at $4.45 per metre
• Used48,000 metres of leather at $3.10 per metre

Based on theactual quantity used, determine thedirect material quantity varianceof both materials (timber and leather) in making the cases. See formulas below:

Standard Costs Formulas as per your prescribed text book

PQ - Purchased Quantity; AP - Actual Price; SP - Standard Price; AQ - Actual Quantity; SQ- Standard Quantity; AR - Actual Rate; SR - Standard Rate; AH - Actual Hours;SH - Standard Hours

Material Variances

Direct MaterialPriceVariance (based on purchased quantity)= PQ(AP - SP)/(PQ x AP)-(PQ x SP)

Direct MaterialQuantityVariance = SP(AQ - SQ)/(AQ x SP) - (SQx SP)

Total Material Variance = Price + Quantity from above

Question 3 options:

A)$751,500 (U) plastic, $96,000 (F) leather

B)$22,500 (F) plastic, $18,000 (F) leather

C)$22,500 (U) plastic, $12,000 (F) leather

D)$22,500 (U) plastic, $18,000 (U) leather