Wings Ltd, mass produce "suit cases" for travel in a variety of colours, but only in one design

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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 (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 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

A) $9,250 (F) plastic, $5,000 (U) leather

B) $9,250 (U) plastic, $5,000 (F) leather

C) $8,750 (U) plastic, $4,800 (U) leather

D) $8,750 (F) plastic, $11,000(F) leather