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Rankin Fabrication reports the following information with respect to its direct materials: Actual quantities of direct materials used 33,800 gallons Actual costs of direct materials

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

Actual quantities of direct materials used 33,800 gallons
Actual costs of direct materials used $ 188,080
Standard price per unit of direct materials $ 5.62
Flexible budget for direct materials $ 197,800

Rankin Fabrication holds no materials inventories.

Required:

Compute the direct material price and efficiency variances.

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

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