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

Direct materials:

Standard: $2\mathrm{.}0$ metres at $$4\mathrm{.}20$ per metre $ $8\mathrm{.}40$

Actual: $2\mathrm{.}2$ metres at $$3\mathrm{.}95$ per metre $ $8\mathrm{.}69$

Direct labour:

Standard: $2\mathrm{.}2$ hours at $$3\mathrm{.}00$ per hour $6\mathrm{.}60$

Actual: $1\mathrm{.}8$ hours at $$3\mathrm{.}35$ per hour $6\mathrm{.}03$

Variable manufacturing overhead:

Standard: $2\mathrm{.}2$ hours at $$1\mathrm{.}50$ per hour $3\mathrm{.}30$

Actual: $1\mathrm{.}8$ hours at $$1\mathrm{.}85$ per hour $3\mathrm{.}33$

Fixed manufacturing overhead:

Standard: $2\mathrm{.}2$ hours at $$3\mathrm{.}60$ per hour $7\mathrm{.}92$

Actual: $1\mathrm{.}8$ hours at $$3\mathrm{.}65$ per hour $6\mathrm{.}57$

Total cost per unit $ $26\mathrm{.}22$ $ $24\mathrm{.}62$

Actual costs: $9,500$ units at $$24\mathrm{.}62$ $ $233,890$

Standard costs: $9,500$ units at $$26\mathrm{.}22249,090$

Difference in cost$$favourable $ $15,200$

During this period, the company produced $9,500$ 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, $20,900$ metres of materials was purchased and used in production. The denominator level of activity for the period was $17,540$ 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$).)$

b$.$ Prepare journal entries to record all activity relating to direct materials for the period.

ARecord the materials price variance.

BRecord the materials quantity variance.

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$).)$