Chapter 25, Problem 19Q

(a).

To determine

Standard Costing Accounting System: Standard costs refer to those costs which are estimated as a standard so that it can be used to compare with the actual costs. The standard cost accounting system is the method which is used to plan the budgets so that the costs are managed and controlled.

Variance Account: The variance account is the account in which the variances which are arising are recorded. The variances are the differences which arise when there is difference between the actual costs and the estimated costs.

To explain: (a) The basic features of a standard costing accounting system.

(b).

To determine

To explain: The type of balance which exists in the variance account when (1) the materials price variance is unfavorable and (2) the labor quantity variance is favorable.