Information on Thurmster Corporations direct materials costs follows: Actual quantities of direct materials used . . .

Question:

Information on Thurmster Corporation’s direct materials costs follows:

Actual quantities of direct materials used . . . . . . . . . . . 7,500

Actual costs of direct materials used. . . . . . . . . . . . . $98,550

Standard price per unit of direct materials. . . . . . . . . . $12.60

Flexible budget for direct materials . . . . . . . . . . . . . . $89,775

Thurmster Corporation has no materials inventories.

Required

a. Prepare a short report for management showing Thurmster Corporation’s direct materials price and efficiency variances.

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

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...