Best, Inc. produced 1,000 units of the company's product in 2016. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.15 per yard. The accounting records showed that 2,500 yards of cloth were used and the company paid $1.20 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.25 per direct labor hour. Employees worked 1,300 hours and were paid $9.75 per hour. Requirements 1. What are the benefits of setting cost standards? 2 Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances. whether each variance is favorable F or unfavorable U Abbreviations used A Begin with the cost variances. Select the required o ulas compute the cost variances for direct materials and direct labor and identif actual cost; AQ-actual quantity, FOH fixed overhead; SC-standard cost, SQ standard quantity.) Choose from any list or enter any number in the input fields and then continue to the next question. Formula Variance Direct materials cost variance = Direct labor cost variance Select the required formulas, compute the efficiency variances or direct materials and direct labor and identif whether each variance is avorable F or unfavorable (U bbreviat ons used A actual cost AQ-actual quantity; F OH fixed overhead; SC standard cost, SQstandard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance