1. How does a standard cost accounting system work, and why is it valuable to management? (2) 2. What is a variance? 3. What might cause the following materials variances? i. An unfavorable materials price variance. ii. A favorable materials price variance. iii. An unfavorable materials quantity variance. iv. A favorable materials quantity variance. 4. What might cause the following labor variances? i. An unfavorable labor rate variance. ii. A favorable labor rate variance. iii. An unfavorable labor efficiency variance. iv. A favorable labor efficiency variance