8.2 You started your own construction business and need to determine the cost of materials used to build one house, and how many materials you will need to do so.

• Where would you begin to determine the standard price and quantity needs to build one house?

• What would produce a difference between the standard cost to build a house and the actual cost?

What would cause a favorable outcome? What would cause an unfavorable outcome?

• What action might your company take if you had an unfavorable total direct materials cost variance?