Bargain$,$

Inc. produced

$1$ comma $0001,000$

units of the$$company$\text{'}$s product in

$20252025.$

The standard quantity allowed of direct materials was

threethree

yards of cloth per unit at a standard cost of

$ $0\mathrm{.}95$$$0\mathrm{.}95$

per yard. The accounting records showed that

$2$ comma $8002,800$

yards of cloth were used and the company paid

$ $1\mathrm{.}00$$$1\mathrm{.}00$

per yard. Standard time was

twotwo

direct labor hours per unit at a standard rate of

$ $13\mathrm{.}00$$$13\mathrm{.}00$

per direct labor hour. Employees worked

$1$ comma $3001,300$

hours and were paid

$ $12\mathrm{.}50$$$12\mathrm{.}50$

per hour.

Read the requirements.

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Question content area bottom

Part $1$

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

Standard costing helps managers do the$$following:

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