A. John Jamail says that he doesn't understand why companies have labor price (rate) variances because most union contracts or other binding agreements set wage rates that do not normally change in the short term. How could rate variances occur even when binding commitments hold the dollar per hour rate constant?

B. What are some advantages and disadvantages of using a standard cost system?

C.What attributes are necessary for establishing the best standards? What information and considerations should be taken into account when establishing standards?