QualityQuality$,$

Inc. produced

$1$ comma $0001,000$

units of the$$ company's product in

$20242024.$

The standard quantity of direct materials was

threethree

yards of cloth per unit at a standard cost of

$ $1\mathrm{.}25$$$1\mathrm{.}25$

per yard. The accounting records showed that

$2$ comma $8002,800$

yards of cloth were used and the company paid

$ $1\mathrm{.}30$ per$$1\mathrm{.}30$per

yard. Standard time was

twotwo

direct labor hours per unit at a standard rate of

$ $14\mathrm{.}50$$$14\mathrm{.}50$

per direct labor hour. Employees worked

$1$ comma $5001,500$

hours and were paid

$ $13\mathrm{.}50$$$13\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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