Bargain, Inc. produced 1,000 units of the company's product in 2024 . The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $130 per yard. The accounting records showed that 2,400 yads of cloth were used and the company paid $1.35 per yard Standard time was hro direct labor hours per unit at a standard rate of $1350 per direct laber hour. Employees worked 1,600 hours and were paid $1300 per hour: Read the recuirements Requirement 1. What are the beneths of setting cost standards? Standard costing helps managers do the folowing Requirement 2. Calculate the direct materials cost variance and the drect mateilals efficiency variance as ned as the drect laber cost and efficiency variances Begin wath the cos variances Select the required formulas, corspute the cost variances for direct materials and direct labor, and ifentify whether cach variance is favarable (f) of Data table direct materials variance analysis was performed for Goldman. icon to view the materials variance analysis.) Requirements 1. Record Goldman's direct materials journal entries. Assume purchases were made on account. 2. Explain what management will do with this variance information. alize the usage of direct materials, including the related variance. (Prepare a single compound journal entry. Rec of the journal entry table.)