company paid $1.35 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. Read the 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. FOH= fixed overhead; SC= standard cost; SQ= standard quantity.) SC= standard cost; SQ= standard quantity.)