Information on Bowgie Chemicals direct materials costs follows.

Actual quantities of direct materials used		30,900
Actual costs of direct materials used	$	138,600
Standard price per unit of direct materials	$	4.29
Flexible budget for direct materials	$	121,500

Bowgie Chemicals has no materials inventories.

Required: a. Prepare a short report for management showing Bowgie Chemicalss direct materials price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.

Prepare a short report for management showing Bowgie Chemicalss direct materials price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Direct materials price variance
Direct materials efficiency variance