Information on Grand Corporations direct materials costs follows.

Quantities of chemical Y purchased and used		19,400	gallons
Actual cost of chemical Y used	$	426,000
Standard price per gallon of chemical Y	$	22.70
Standard quantity of chemical Y allowed		17,800	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.