Q2 Standard costing and Variance Analysis. Analyzing the performance for the last financial year, the company has realized there were deviations from forecasted budgets. Advise on which variances should the company focus on, what are potential issues with using standard costing and how standard costing can be used to assess and improve managerial performance. (500 words) - 20 marks A) Explain standard costing and appropriate standard setting for a furniture design and manufacturing company -4M 100 B) Discuss 3 most appropriate variances to be investigated by the management. Justify your answer. -12M 300 C) Discuss issues in standard-setting and impact on management behavior -4M 100