Chapter 26, Problem 1BE

(a)

To determine

Standard Costs: These are the costs which a company determines as a standard to attain its objectives. These are the pre-determined costs where an expected cost is substituted for the actual costs and companies use this for measuring performance. These are measured as cost per unit.

Budgeted Costs: The budgeted costs are also the predetermined costs which are used to measure the performance. These are measured as the total costs.

To determine: The estimates for standard cost.

(b)

To determine

 The estimates for the budgeted cost.