Exercise 16-37 (Appendix used in requirement [b]) Variable Cost Variances (LO 16-5, 7) Information on Bowgie Chemicals direct materials costs follows Actual quantities of direct materials used Actual costs of direct materials used Standard Flexible budget for direct materials 30,200 $133,000 S 4.22 $120,100 price per unit of direct materials Bowgie Chemicals has no materials inventories Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials price variance Direct materials efficiency variance b. (Appendix) Prepare the jounal entries to record the purchase and use of the direct materials using standard costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase and use of the direct materials at standard cost. Note: Enter debits before credits General Journal Event Debit Credit Record entry Clear entry View general journal