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Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used 31,900 Actual costs of direct materials used $ 146,600 Standard price
Information on Bowgie Chemicals direct materials costs follows.
Actual quantities of direct materials used | 31,900 | ||
Actual costs of direct materials used | $ | 146,600 | |
Standard price per unit of direct materials | $ | 4.39 | |
Flexible budget for direct materials | $ | 123,500 | |
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.
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