explain the question and 3 journal entries for each

total variance should be2256F

Materials used Labour cost ?? PROBLEM 10B-3 Comprehensive Variance Analysis; Journal Entries LO2, LO3. LO4 LOS, LO6, LO9 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 Actual Cost Cost Direct materials: $14.40 Standard: 4.0 metres at $3.60 per metre... Actual: 44 metres at $3.35 per metre... $14.74 Direct labour Standard: 16 hours at $4.50 per hour .... Actual: 1.4 hours at $485 per hour Variable manufacturing overhead: Standard: 16 hours at $180 per hour..... Actual: 14 hours at $2.15 per hour.. Fixed manufacturing overhead: Standard: 16 hours at $300 per hour. Actual: 14 hours at $305 per hour Total cost per unit 7.20 6,79 288 3.01 480 4.27 $288 $29.28 Actual costs: 4800 units at $28.81 Standard costs 4800 units at $29.28. Ofference in cost-favourable.. $138.288 140.544 $ 2256 During this period. the company produced 4.800 units of product. A comparison of stan- dard and actual costs for the period on a total cost basis is also given above. Chapter 10 Standard Costs and Overhead Analysis inventory of materials on hand to start the period. During the period. There was no 21.120 metres of materials was purchased and used in production. The denominator level of activity for the period was 6,860 hours. Required: 1 For direct materials: Compute the price and quantity variances for the period. h Prepare journal entries to record all activity relating to direct materials for the period. 2 For direct labour Compute the rate and efficiency variances. b Prepare a journal entry to record the incurrence of direct labour cost for the period. Compute the variable manufacturing overhead spending and efficiency variances. 4 Compute the fixed overhead budget and volume variances. 5 On seeing the $2.256 total cost variance, the company's president stated. "It's obvious that our costs are well under control." Do you agree? Explain. 6 State possible causes of each variance that you have computed. Materials used Labour cost ?? PROBLEM 10B-3 Comprehensive Variance Analysis; Journal Entries LO2, LO3. LO4 LOS, LO6, LO9 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 Actual Cost Cost Direct materials: $14.40 Standard: 4.0 metres at $3.60 per metre... Actual: 44 metres at $3.35 per metre... $14.74 Direct labour Standard: 16 hours at $4.50 per hour .... Actual: 1.4 hours at $485 per hour Variable manufacturing overhead: Standard: 16 hours at $180 per hour..... Actual: 14 hours at $2.15 per hour.. Fixed manufacturing overhead: Standard: 16 hours at $300 per hour. Actual: 14 hours at $305 per hour Total cost per unit 7.20 6,79 288 3.01 480 4.27 $288 $29.28 Actual costs: 4800 units at $28.81 Standard costs 4800 units at $29.28. Ofference in cost-favourable.. $138.288 140.544 $ 2256 During this period. the company produced 4.800 units of product. A comparison of stan- dard and actual costs for the period on a total cost basis is also given above. Chapter 10 Standard Costs and Overhead Analysis inventory of materials on hand to start the period. During the period. There was no 21.120 metres of materials was purchased and used in production. The denominator level of activity for the period was 6,860 hours. Required: 1 For direct materials: Compute the price and quantity variances for the period. h Prepare journal entries to record all activity relating to direct materials for the period. 2 For direct labour Compute the rate and efficiency variances. b Prepare a journal entry to record the incurrence of direct labour cost for the period. Compute the variable manufacturing overhead spending and efficiency variances. 4 Compute the fixed overhead budget and volume variances. 5 On seeing the $2.256 total cost variance, the company's president stated. "It's obvious that our costs are well under control." Do you agree? Explain. 6 State possible causes of each variance that you have computed