Rankin Fabrication reports the following information with respect to its direct materials: 

Rankin Fabrication holds no materials inventories. 

Required

a. Prepare a short report for Rankin’s management showing direct materials price and efficiency variances.

b. Prepare the journal entries to record the purchase and use of the direct materials using standard costing.

Transcribed Image Text:

Actual quantities of direct materials used....... Actual costs of direct materials used... Standard price per unit of direct materials Flexible budget for direct materials .... 33,600 gallons $186,480 $5.60 $196,000