1) What is a quantity standard? What is a pricestandard?
2) Why are separate price and quantity variancescomputed?
3) Who is generally responsible for the materials pricevariance? The materials quantity variance? The laborefficiency?
5) If the materials price variance is favorable but thematerials quantity variance is unfavorable, what might thisindicate?
7) "Our workers are all under labor contracts;therefore, our labor rate variance is bound to be zero."Discuss.
8) What effect, if any, would you expect poor-qualitymaterials to have on direct labor variances?
