Submit test Bargain, Inc. produced 1,000 units of the company's product in 2018. 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 2,700 yards of cloth were used and the company paid $1.25 per yard. Standard time was two direct labor hours per unit at a standard rate of $11.50 per direct labor hour. Employees worked 1,500 hours and were paid $11.00 per hour. Read the requirements. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Requirement 2. Calculate the direct materials cost variance and the direct