Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 8

(Appendix used in Part b) Variable Cost Variances
Information on Thurmster Corporation's direct materials costs follows:

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.