Question Superor, the produced 1000 of the company's product in 2018 The standard quantity of direct were yards of the that 2.900 yards of cloth were used and the company paid $1.10 per yard Standard time was to direct labor hours per una standard paid $10.00 per hour Read the requirements award cost of of $10 Ordrec hou the w g t o h o d and Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Requirement 2. Calculate the direct materials ont variance and the direct materials officiency 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 rect labor and ently whether each variance is favorable AC = actual cos. AQ - actual quantity, FOHf ed overhead, SC standard oost: S = standard quantity.) or untivorable Abbreviations used Formula Direct mais con variance Director at variance whether each wariances abo ve AC A Select the required formulas, compute the efficiency variances for direct materials and director and D Choose from any or enter any number in the input folds and then continue to the next question Formula Variance Direct materials efficiency variance Direct labor efficiency variance 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