Standard Costing and Variance Analysis 
a. Define standard costing and explain its role in performance evaluation and control.
b. A company sets standard labor and material costs for producing one unit of Product X as follows: 4 hours of labor at $20 per hour and 10 pounds of material at $5 per pound. During the period, the company produces 1,000 units of Product X, incurring actual labor costs of $80,000 and actual material costs of $50,000. Calculate the labor rate variance, labor efficiency variance, material price variance, and material quantity variance. Interpret the variances and suggest possible causes for the differences.