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): Direct materials: Standard: 3.0 metres at $3.70 per metre Actual: 3.4 metres at $3.45 per metre Direct labour: Standard: 1.7 hours at $3.50 per hour Actual: 1.4 hours at $3.85 per hour Variable manufacturing overhead: Standard: 1.7 hours at $1.50 per hour Actual: 1.4 hours at $1.85 per hour Fixed manufacturing overhead: Standard: 1.7 hours at $3.10 per hour Actual: 1.4 hours at $3.15 per hour Total cost per unit Actual costs: 6,000 units at $24.12 Standard costs: 6,000 units at $24.87 Difference in cost-favourable $144,720 149,220 $ 4,500 Standard Actual Cost Cost $11.10 $11.73 5.95 5.39 2.55 2.59 5.27 4.41 $24.87 $24.12 During this period, the company produced 6,000 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, 20,400 metres of materials was purchased and used in production. The denominator level of activity for the period was 8,540 hours.