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 Direct materials: Standard: 4.0 metres at $4.60 per metre Actual: 4.2 metres at $4.40 per metre Direct labour: $18.40 $18.48 Standard: 2.4 hours at $4.50 per hour Actual: 2.2 hours at $4.85 per hour 10.80 10.67 Variable manufacturing overhead: Standard: 2.4 hours at $2.20 per hour Actual: 2.2 hours at $2.55 per hour 5.28 5.61 Fixed manufacturing overhead: Standard: 2.4 hours at $3.80 per hour Actual: 2.2 hours at $3.85 per hour Total cost per unit 9.12 8.47 $43.60 $43.23 Actual costs: 5,000 units at $43.23 Standard costs: 5,000 units at $43.60 Difference in cost-favourable $216,150 218,000 $ 1,850 During this period, the company produced 5,000 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, 21,000 metres of materials was purchased and used in production. The denominator level of activity for the period was 11,200 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 (i.e., zero variance).) Answer is not complete. Price variance Quantity variance b. Prepare journal entries to record all activity relating to direct materials for the period. Answer is not complete. General Journal Debit Credit No A Event 1 Raw materials Materials price variance Accounts payable 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 (i.e., zero variance).) Labour rate variance Labour efficiency variance Answer is not complete. U F b. Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). Answer is not complete. No Event General Journal Debit Credit 1 1 Work in process Labour rate variance Labour efficiency variance Wages payable