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 $4.00 per metre $ 12.00 Actual: 3.2 metres at $3.80 per metre $ 12.16 Direct labour: Standard: 2.0 hours at $3.50 per hour 7.00 Actual: 1.8 hours at $3.85 per hour 6.93 Variable manufacturing overhead: Standard: 2.0 hours at $1.80 per hour 3.60 Actual: 1.8 hours at $2.15 per hour 3.87 Fixed manufacturing overhead: Standard: 2.0 hours at $3.40 per hour 6.80 Actual: 1.8 hours at $3.45 per hour 6.21 Total cost per unit $ 29.40 $ 29.17 Actual costs: 6,000 units at $29.17 $ 175,020 Standard costs: 6,000 units at $29.40 176,400 Difference in costfavourable $ 1,380 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, 19,200 metres of materials was purchased and used in production. The denominator level of activity for the period was 11,000 hours. Required: 1. For direct materials:

a. Compute the price and quantity variances for the period.

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

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

3. Compute the variable manufacturing overhead spending and efficiency variances.

4. Compute the fixed overhead budget and volume variances