Petty Petroleum, Inc., uses various chemicals to manufacture its products. Variance data for last month for the three primary chemicals used in production are shown below (F indicates a favorable variance; U indicates an unfavorable variance):

The standard required 1 pound of chemical for each product requiring the specific chemical. Because of falling prices in the chemical industry, Petty Petroleum generally paid less for chemicals last month than in previous months. Specifically, the average price paid was $0.40 per pound less than standard for chemical X42; it was $0.20 less for chemical AY8; and it was $0.14 greater for chemical 9BZ. All of the chemicals purchased last month were also used during the month.

Required
A. For chemical X42, calculate the number of pounds of material purchased, the standard cost per pound of material, and the total standard material cost.
B. For chemical AY8, calculate the number of pounds of material purchased, the standard cost per pound of material, and the total standard material cost.
C. For chemical 9BZ, calculate the number of pounds of material purchased, the standard cost per pound of material, and the total standard materialcost.

Transcribed Image Text:

X42 AY8 9BZ $84,000 F 50,000 F 42,000 U Material price variance Material usage variance Total materials variance (net)4000F 80,000 U 60,000 U 96,000 U $ 4,000 F 10,000U 5138,000 U 220,000 Products requiring this chemical 200,000 250,000