E23-18 (similar to) Question Help direct materials was three yards of cloth per unit at a standard cost of $1.15 per yard. The accounting records showed that 2,400 yards of cdloth were used and the company paid $1.20 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.75 per direct labor hour. Employees worked 1,300 hours and were paid $10.25 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 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 identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used: AC 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 click Check Answer. (? part remaining Clear All Check Answer E23-18 (similar to) Question Help direct materials was three yards of cloth per unit at a standard cost of $1.15 per yard. The accounting records showed that 2,400 yards of cdloth were used and the company paid $1.20 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.75 per direct labor hour. Employees worked 1,300 hours and were paid $10.25 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 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 identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used: AC 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 click Check Answer. (? part remaining Clear All Check