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 price per unit of direct materials Flexible budget for direct materials 31,600 $144,200 $ 4.36 $122,900 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 journal 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 debit care credits. Event General Journal Debit Credit Record entry Clear entry View general journal