3. Compute the variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) U Variable overhead spending variance Variable overhead efficiency variance F 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) $ 14,976 F Fixed overhead budget variance Fixed overhead volume variance 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 $ 9.60 $10.92 7.00 6.84 Direct materials: Standard: 2.0 metres at $4.80 per metre Actual: 2.4 metres at $4.55 per metre Direct labour: Standard: 2.8 hours at $2.50 per hour Actual: 2.4 hours at $2.85 per hour Variable manufacturing overhead: Standard: 2.8 hours at $2.60 per hour Actual: 2.4 hours at $3.10 per hour 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 7.28 7.44 11.76 10.20 $ 35.40 $ 35.64 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 During this period, the company produced 9,600 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, 23,040 metres of materials was purchased and used in production. The denominator level of activity for the period was 23,420 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).)