Superior, Inc. produced $1,000$ units of the company's product in $2025.$ The standard quantity allowed of direct materials was

three yards of cloth per unit at a standard cost of $$1\mathrm{.}10$ per yard. The accounting records showed that $2,400$ yards of cloth were

used and the company paid $$1\mathrm{.}15$ per yard. Standard time was two direct labor hours per unit at a standard rate of $$15\mathrm{.}00$ per

direct labor hour. Employees worked $1,200$ hours and were paid $$14\mathrm{.}00$ per hour.

Read the requirements.

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

Standard costing helps managers do the following:

Requirements

What are the benefits of setting cost standards?

Calculate the direct materials cost variance and the direct materials efficiency

variance as well as the direct labor cost and efficiency variances.