Problem 10B-3 Comprehensive Variance Analysis; Journal Entries [LO2, LO3, LO4, LO5, LO6, LO9] 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 mmnan.- product lines (per unit of product): During this period, the company produced 4,500 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, 19,800 metres of materials was purchased and used in production. The denominator level of activity for the period was 8,240 hours. Required: 1. For direct materials: 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 (lie., zero variance).) b. Prepare journal entries to record all activity relating to direct materials for the period. Journal entry worksheet Record the materials price variance. Notel Enter debits before credits. b. Prepare journal entries to record all activity relating to direct materials for the period. Journal entry worksheet Record the materials quantity variance. Note: Enter debits before credits. 2. For direct labour: a. Compute the rate agd efficiency variances. (Indicate the effect of variance by selecting "Fr" for fovourable, "U" for unfavourabie. and "None" for no efiket (i.e., zero variance).) b. Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). Journal entry worksheet Record the incurrence of direct labour cost for the period. Notel Enter debits before credits. 3. Compute the variable menufacturing overhead spending and effiency vaiances. Andicate the effect of tach variance by 4. Compute the fixed ovethead budget and volume variances, findicate the effect of varlance by selecting "F" for favourable, "U" for unfivourable, end "None" for no effect (le., rero variance)\} 5. On seeing the $4.860 total cost varience, the company president stated, "its obvious that our costs are wed under conthac" Do you wovel? Yes No 6. This part of the question is not part of your Connoct ascignment