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 $ 16.80 $ 17.28 7.ee 6.93 Direct materials: Standard: 3.8 metres at $5.60 per metre Actual: 3.2 metres at $5.40 per metre Direct labour: Standard: 2.0 hours at $3.50 per hour Actual: 1.8 hours at $3.85 per hour Variable manufacturing overhead: Standard: 2.0 hours at $1.50 per hour Actual: 1.8 hours at $2.10 per hour Fixed manufacturing overhead: Standard: 2.0 hours at $5.00 per hour Actual 1.8 hours at $5.05 per hour Total cost per unit 3.60 3.78 10.ee 9.09 $ 37.40 $ 37.0 Actual costs: 7,eee units at $37.08 Standard costs: 7,eee units at $37.40 $ 259,560 261,800 Difference in cost-favourable $2,240 During this period, the company produced 7,000 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, 22.400 metres of materials was purchased and used in production. The denominator level of activity for the period was 12.740 hours Required: 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 (i.e., zero variance).) Answer is complete but not entirely correct. S Price variance Quantity variance s b. Prepare journal entries to record all activity relating to direct materials for the period. No Credit Event 1 Answer is not complete. General Journal Materials price variance Accounts payable Debit 18 1 18 17 2 2 Materials quantity varianco Raw materials 17 3 2. For direct labour a. Compute the rate and efficiency variances, (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (1.e., zero variance).) Answer is complete but not entirely correct. S 1 Labour rate variance Labour officiency varianco $ 1 b. Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). Event Answer is not complete. General Journal Labour officiency variano Wages payable Debit No 1 Credit 1 73 783 3. Compute the variable manufacturing overhead spending and efficiency variances (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct. $ Variable overhead spending varianco Variable overhead efficiency variance $ 0 4. Compute the fixed overhead budget and volume variances (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (le, zero variance).) Answer is complete but not entirely correct. 0 F Fixed overhead budget Variance Fixed Overhead volume variance $ 5. On seeing the $2,240 total cost variance, the company's president stated, it's obvious that our costs are well under control Do you agree