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.