Information on Grand Corporations direct materials costs follows.

Quantities of chemical Y purchased and used		19,600	gallons
Actual cost of chemical Y used	$	427,000
Standard price per gallon of chemical Y	$	22.90
Standard quantity of chemical Y allowed		18,000	gallons

Grand Corporation has no materials inventories.

Required:

a. What were Grand Corporations direct materials price and efficiency variances? b. (Appendix) Prepare the journal entries to record the purchase and use of chemical Y using standard costing.

What were Grand Corporations 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