Exercise 16-38 (Appendix used in requirement [b]) Variable Cost Variances (LO 16-5, 7) Information on Grand Corporations direct materials costs follows: Quantities of chemical Y purchased and used 21,000 gallons Actual cost of chemical Y used $ 434,000 Standard price per gallon of chemical Y $ 24.30 Standard quantity of chemical Y allowed 19,400 gallons Grand Corporation has no materials inventories. Required: a. What were Grand Corporations 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.) b. (Appendix) Prepare the journal entries to record the purchase and use of chemical Y using standard costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)