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: . Purchased 185,000 metres of plastic at $4.45 per metre Purchased 50,000 metres of leather at $3.10 per metre Used 175,000 metres of plastic at $4.45 per metre . Used 48,000 metres of leather at $3.10 per metre Based on the purchased quantity, determine the direct material price variance of both materials (plastic 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 Material Price Variance (based on purchased quantity)= PQ(AP - SP) / (PQ x AP) (PQ. x SP) Direct Material Quantity Variance = SP(AQ - SQ) / (AQ x SP) - (SQ x SP) Total Material Variance = Price + Quantity from above O ma 144 19 C