Deluxe, 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 5100 per yard The accounting records showed that 2 600 yards of cloth were used and the company paid $105 per yard Standard time was two direct labor hours per unit at a standard rate of $1300 per direct labor hour Employees worked 1,500 hours and were paid $12.00 per hour Read the requirements Requirement 1. What are the benefits of setting cost standards Standard casting 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 Begin with the cost variances Select the required formulas, compute the cost variances for direct materials and direct labor, and identity whether each variance is lavorable (F) ot untavorable (U) (Abbreviations used: AC = actual cost AQ - actual quantity FOH = fixed overhead, SC = standard cost, SQ = standard quantity) Formula Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether oach variance is favorable (F) or unfavorable (U) (Abbreviations used AC = actual cost AO = actual quantity FOH = fixed overhead SC = standard cost SQ standard quantity Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abhreviations used AC actual cost, AQ = actual quantity, FOH = fixed overhead, SC - standard cost, SQ = standard quantity) Formula Variance Direct materials efficiency variance Direct labor efficiency variance