rk B - Graded Question 2, EM6-18 (similar to) Part 1 of 3 HW Score: 33.24%, 11.3 of 34 points O Points: 0 of 6 Save Deluxe, 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 $1.10 per yard. The accounting records showed that 2.900 yards of cloth were used and the company paid $1.15 per yard. Standard time was two direct labor hours per unit at a standard rate of $13.00 per direct labor hour. Employees worked 1,600 hours and were paid $11.50 per hour. Read the requirements Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Set target levels of performance for flexible budgets 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. Create new products Decrease accounting costs Develop more efficient production methods Identify performance standards Increase production levels Increase sales volume Prepare the master budget Set sales prices of products and services Set target levels of performance for flexible budgets