Haliburton Mills Inc. is a large producer of mens and womens 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 companys product lines (per unit of product):

	Standard Cost			Actual Cost
Direct materials:
Standard: 3.0 metres at $4.90 per metre	$	14.70
Actual: 3.4 metres at $4.65 per metre				$	15.81
Direct labour:
Standard: 2.9 hours at $3.50 per hour		10.15
Actual: 2.6 hours at $3.85 per hour					10.01
Variable manufacturing overhead:
Standard: 2.9 hours at $2.70 per hour		7.83
Actual: 2.6 hours at $3.05 per hour					7.93
Fixed manufacturing overhead:
Standard: 2.9 hours at $4.30 per hour		12.47
Actual: 2.6 hours at $4.35 per hour					11.31
Total cost per unit	$	45.15		$	45.06

Actual costs: 6,500 units at $45.06	$	292,890
Standard costs: 6,500 units at $45.15		293,475
Difference in costfavourable	$	585

During this period, the company produced 6,500 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, 22,100 metres of materials was purchased and used in production. The denominator level of activity for the period was 17,240 hours.

2. For direct labour:

a. Compute the rate and efficiency variances.

b. Prepare a journal entry to record the incurrence of direct labour cost for the period ( Record the incurrence of direct labour cost for the period.)