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: $2\mathrm{.}5$ metres at $$5\mathrm{.}40$ per metre $ $13\mathrm{.}50$

Actual: $2\mathrm{.}6$ metres at $$5\mathrm{.}20$ per metre $ $13\mathrm{.}52$

Direct labour:

Standard: $1\mathrm{.}8$ hours at $$3\mathrm{.}00$ per hour $5\mathrm{.}40$

Actual: $1\mathrm{.}6$ hours at $$3\mathrm{.}35$ per hour $5\mathrm{.}36$

Variable manufacturing overhead:

Standard: $1\mathrm{.}8$ hours at $$1\mathrm{.}60$ per hour $2\mathrm{.}88$

Actual: $1\mathrm{.}6$ hours at $$1\mathrm{.}95$ per hour $3\mathrm{.}12$

Fixed manufacturing overhead:

Standard: $1\mathrm{.}8$ hours at $$4\mathrm{.}80$ per hour $8\mathrm{.}64$

Actual: $1\mathrm{.}6$ hours at $$4\mathrm{.}85$ per hour $7\mathrm{.}76$

Total cost per unit $ $30\mathrm{.}42$ $ $29\mathrm{.}76$

Actual costs: $8,200$ units at $$29\mathrm{.}76$ $ $244,032$

Standard costs: $8,200$ units at $$30\mathrm{.}42249,444$

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 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.