(a).
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 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.

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Chapter 26 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
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