Check my work Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the company's product lines (per unit of product): Standard Cost Actual Cost $ 13.50 $ 13.52 5.40 5.36 Direct materials: Standard: 2.5 metres at $5.40 per metre Actual: 2.6 metres at $5.20 per metre Direct labour: Standard: 1.8 hours at $3.00 per hour Actual: 1.6 hours at $3.35 per hour Variable manufacturing overhead: Standard: 1.8 hours at $1.60 per hour Actual: 1.6 hours at $1.95 per hour Fixed manufacturing overhead: Standard: 1.8 hours at $4.80 per hour Actual: 1.6 hours at $4.85 per hour 2.88 3.12 8.64 7.76 Total cost per unit $ 30.42 $ 29.76 Actual costs: 8,200 units at $29.76 Standard costs: 8,200 units at $30.42 $ 244,032 249,444 Difference in cost-favourable $ 5,412 During this period, the company produced 8,200 units of product. A comparison of standard and actual costs for the period on a total Check my wori During this period, the company produced 8,200 units of product. A comparison of standard and actual costs for the period on a total cost basis is also given above. There was no inventory of materials on hand to start the period. During the period, 21,320 metres of materials was purchased and used in production. The denominator level of activity for the period was 13,260 hours. Required: 1. For direct materials: a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) es Price variance Quantity variance Check my work b. Prepare journal entries to record all activity relating to direct materials for the period. View transaction list Journal entry worksheet Record the materials price variance. Note: Enter debits before credits General Journal Debit Credit Event 1 Record entry Clear entry View general journal Check my work b. Prepare journal entries to record all activity relating to direct materials for the period. View transaction list Journal entry worksheet 2 Record the materials quantity variance. Note: Enter debits before credits. Event General Journal Debit Credit 2 Clear entry Record entry View general journal Prey 4 of 4 ! Nex Check my work 2 For direct labour: a. Compute the rate and efficiency variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance b. Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). View transaction list Check my wor b. Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). View transaction list Journal entry worksheet
