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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

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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 cost $ 18.55 $19.59 6.80 5.22 Direct materials Standard: 3.5 metres at $5.30 per metre Actual: 3.9 metres at 55.10 per metre Direct labour! Standard: 1.7 hours at 54.00 per hour Actual: 1.2 hours at 54.35 per hour Variable manufacturing overhead: Standard: 1.7 hours at $1.50 per hour Actual: 1.2 hours at $2.20 per hour Fixed manufacturing overhead: Standard: 1.7 hours at $4.70 per hour Actual: 1.2 hours at $4.75 per hour 2.55 2.64 7.99 5.70 5 35.59 $13.45 Total cost per unit $ 200,700 215,340 Actual costs: 6,000 units at $33.45 Standard costs: 5,000 unitat 535.89 Difference in cost-favourable 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 23,400 metres of materials was purchased and used in production. The denominator level of activity for the period was 7340 hours Required: 1. For direct materials a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "P" for favourable, un for unfavourable, and "None" for no effect (le, 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 > 1 2 Record the materials price variance. Note: Enter debits before credits Doble Credit General Journal Event 1 Journal entry worksheet

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