EM6-18 (similar to) Question Help ry All-Star, 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 $1.05 per yard. The accounting records showed that 2.600 yards of cloth were used and the company paid $1.10 per yard Standard time was two direct labor hours per unit at a standard rate of $12.00 per direct labor hour. Employees worked 1,500 hours and were paid $11.50 per hour. Read the requirements Set sales prices of products and services Prepare the master budget Identity performance standards Decrease accounting costs Requirement 2. Calculate the direct materials cont variance and the direct materials officiency variance as well as the direct labor cost and efficiency variances Begin with tho cont variances Select the required formulas, compute the cont variancon for direct materials and direct labor, and identity whether each variancois favorable (F) or unfavorablo (U). (Abbreviations ned AC actual cost AQ actual quantity: FOH fixed overhead: SC standard Cont: 50 standard quantity) Formula Variance Direct materials cost variance (AC-SC) AB 140U Direct labor cost variance (AC-SC) AG 5 Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U) (Abbreviations used, AC actual cost, AQ - actual quantity, FOH = fixed overhead: SC standard cost, so standard quantity) Formula Variance Direct materials officiency variance Direct tabor officiency variance $ 750 F +++ . Choose from any list or enter any number in the input fields and then click Check Answer a... All parts showing Clear All Check Answer i Requirements x 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. Print Done