Read the requirements.

Requirement $1.$ What are the benefits of setting cost standards?

Standard costing helps managers do the following:

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. actual quantity; FOH$=$ fixed overhead; $SC=$ standard cost; $SQ=$ standard quantity.$)$

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