liburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. e standard costs and actual costs for a recent period are given below for one of the company's product lines (per unit of duct): Standard Actual Cost Cost Direct materials: Standard: 2.0 metres at $4.80 per metre Actual: 2.4 metres at $4.55 per metre Direct labour: $ 9.60 $ 10.92 Standard: 2.8 hours at $2.50 per hour 7.00 Actual: 2.4 hours at $2.85 per hour 6.84 Variable manufacturing overhead: Standard: 2.8 hours at $2.60 per hour Actual: 2.4 hours at $3.10 per hour 7.28 7.44 Fixed manufacturing overhead: Standard: 2.8 hours at $4.20 per hour Actual: 2.4 hours at $4.25 per hour Total cost per unit 11.76 10.20 $35.64 $35.40 Actual costs: 9,600 units at $35.40 Standard costs: 9,600 units at $35.64 Difference in cost-favourable $339,840 342,144 $ 2,304