-18 Develop more efficient production methods Identify performance standards andard quan K ere used and Increase production levels ed 1,300 hour Increase sales volume Prepare the master budget Set sales prices of products and services Set target levels of performance for flexible budgetsto) Create new products andard quantity Decrease accounting costs ere used and th ed 1,300 hours Develop more efficient production methods Identify performance standards Increase production levels Increase sales volume Prepare the master budgetQuality, 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 $1.25 per yard. The accounting records showed that 2,400 yards of cloth were used and the company paid $1.30 per yard. Standard time was two direct labor hours per unit at a standard rate of $14.00 per direct labor hour. Employees worked 1,300 hours and were paid $13.00 per hour. Read the requirements. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following:Requirements 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