prepare 3

journal entries for each and explain all things that have to find in question

Materials used ? Labour cost ? ? nal Entries (LO2, LO3. L04 PROBLEM 10B-3 Comprehensive Variance Analysis: Journal Entries ILO LOS. LO6, LO9] Haliburton Mills Inc. is a large producer of men's and women's clothing standard costs for all of its products. The standard costs and actual costs for are given below for one of the company's product lines (per unit of product 's clothing. The company uses al costs for a recent period Standard Cost Actual Cost $14.40 720 Direct materials: Standard: 40 metres at $3.60 per metre. Actual: 44 metres at $335 per metre.... Direct labour Standard: 16 hours at $4.50 per hour .... Actual: 14 hours at $485 per hour Variable manufacturing overhead: Standard: 16 hours at $180 per hour.... Actual: 14 hours at $2.15 per hour ...... Fixed manufacturing overhead: Standard: 16 hours at $3.00 per hour .... Actual: 14 hours at $305 per hour ...... Total cost per unit 288 480 $29.28 $2881 Adual costs: 4800 units at $2881 .......... Standard costs: 4800 units at $29.28...... Difference in cost-favourable............ $138.288 140.544 $ 2.256 . During this period, the company produced 4.800 units of product. A compare dard and actual costs for the period on a total cost basis is also given above. duct. A comparison of stan- Chapter 10 Standard Costs and Overhead Analysis no inventory of materials on hand to start the period. During the period. of materials was purchased and used in production. The denominator level of There was no inventory 21.120 metres of materia y for the period was 6,860 hours. Required: 1. For direct materials: Compute the price and quantity variances for the period. Prepare journal entries to record all activity relating to direct materials for the period. 2. For direct labour: 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. 5. On seeing the $2.256 total cost variance, the company's president stated, "It's obvious that our costs are well under control." Do you agree? Explain. 6. State possible causes of each variance that you have computed