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(Appendix used in Part b) Variable Cost Variances
Information on Canyon Chemical's direct materials costs follows:
Quantities of chemical Y purchased and used
28,800 gallons
Actual cost of chemical Y used
$640,000
Standard price per gallon of chemical Y
$22.50
Standard quantity of chemical Y allowed
26,400 gallons
Required
a.What were Canyon Chemical'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.
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