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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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