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 Direct materials: Cast Standard: 4.0 metres at $4.10 per metre Actual: 4.4 metres at $3.85 per metre $ 16.40 Direct labours $16.94 Standardt 2.1 hours at $4.58 per hour 9.45 Actual: 1.8 hours at $4.85 per hour 8.73 Variable manufacturing overhead: Standard: 2.1 hours at $1.00 per hour 3.99 Actual: 1.5 hours at $2.25 per hour 4.05 Fixed sanufacturing overheads Standard: 2.1 hours at $3.50 per hour 7.35 Actual: 1.8 hours at $3.55 per hour 6.39 Total cost per unit $ 37.19 $36.11 Actual costs: 4,500 units at $36.11 Standard costs: 4,500 units at 537.19 Difference in cost-favourable $ 162,495 162.355 4.800 During this period, the company produced 4,500 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 19,800 metres of materials was purchased and used in production. The denominator level of activity for the period was 8.240 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 (ie, zero variance).) Price variance Quantity variance b. Prepare journal entries to record all activity relating to direct materials for the period. View transaction list Journal entry worksheet