Quality, 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 $1.20 per yard. The accounting records showed that 2,900 yards on cloth were used and the company paid $1.25 per yard. Standard time was two direct labor hours per unit at a standa rate of $16.50 per direct labor hour. Employees worked 1,600 hours and were paid $15.00 per hour. Read the requirements. Prepare the master budget Set target levels of performance for flexible budgets Identify performance standards Set sales prices of products and services Decrease accounting costs 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.) Formula Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the (AC-SC) * AQ and direct labor, and identify whether each variance is favorable (F) or (AC-SC)* SQ C = actual cost; AQ = actual quantity, FOH = fixed overhead: SC = star (AQ - SQ) * AC (AQ - SQ) SC Actual FOH - Allocated FOH Variance Direct materials efficiency variance Actual FOH - Budgeted FOH Direct labor efficiency variance Bugeted FOH - Allocated FOH Choose from any list or enter any number in the input fields and then continue to the next question. ? Help Quality, Inc. produced 1,000 units of the company's product in 2024. The standard quantity of direct materials three yards of cloth per unit at a standard cost of $1.20 per yard. The accounting records showed that 2,900 y cloth were used and the company paid $1.25 per yard. Standard time was two direct labor hours per unit at a rate of $16.50 per direct labor hour. Employees worked 1,600 hours and were paid $15.00 per hour. Read the requirements. Prepare the master budget Set target levels of performance for flexible budgets Identify performance standards Set sales prices of products and services Decrease accounting costs Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as direct labor cost and efficiency variances. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and dir 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.) 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 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) Direct materials efficiency variance Direct labor efficiency variance Formula Variance Choose from any list or enter any number in the input fields and then continue to the