Information on Grand Corporation's direct materials costs follows:

Quantities of chemical Y purchased and used . . . . 19,200 gallons

Actual cost of chemical Y used . . . . . . . . . . . . . . . $425,000

Standard price per gallon of chemical Y . . . . . . . . . $22.50

Standard quantity of chemical Y allowed . . . . . . . . 17,600 gallons

Grand Corporation has no materials inventories.

Required

a. What were Grand Corporation's direct materials price and efficiency variances?

b. (Appendix) Prepare the journal entries to record the purchase and use of chemical Y using standard costing.