***Information from QUESTION 8***

Chips, Inc. is preparing the budget for its fiscal year ending on 30 June 2018 (FY2017). The company produces Widgets using the raw material, oximate polyethyl hydroxide (OPH). Three pounds of OPH are needed to produce each Widget. The market price of OPH varies but Chips expects the average price to be $2.80 per pound. Chips plans to sell 510,000 Widgets during FY2017. The table below shows the beginning inventories and planned ending inventories for OPH and Widgets.

Inventories
			1-Jul-17	30-Jun-18
OPH: Raw materials (lbs.)			40,000	66,000
Widgets: Finished goods (units)			44,000	41,000

ewHepV Tell me what you want to do % Cut Copy , Format Painter B 1 u .. 8-A- Chpboard Palatino-Roman-112. K spTet General EMerge & Center-5 . % , Conditional Forrna Formatting Table Fort Alignment Number Assume the standard cost data pertaining to direct materials given in Question 8 for Chips Inc. At the beginning of July 2018 Dale Walmsley is looking over the OPH related results for FY2017. Dale has accumulated the information shown in the table FY2017 Results Actual lbs. of OPH purchased in FY 2017 Average cost per pound Actual Ibs. of OPH used in production Units of Widgets produced in FY 2017 1,525,000 $2.76 1,515,850 97,000 5 6 18 20 How much did Chips spend on purchasing OPH? Answers 23 How much should Chips have spent on purchasing OPH if t paid 24 budgeted price? 25 26 What is the price variance on purchases? A positive number denotes an 27 unfavorable variance 28 29 How many pounds of OPH should Chips have used in its production of 30 OPH for the year? 31 32 What is the quantity variance related to the use of OPH in the production 33 of Widgets for the year. A positive number denotes an unfavorable vaniance 34 35 36 37 O Type here to search