Final answer:
Variances in cost accounting occur when there's a difference between actual and standard costs or quantities; when actual price and quantity match the standards, there are no variances. The concept is applicable if a company experiences no difference in anticipated material cost and usage in production.
Step-by-step explanation:
The question pertains to the concept of variances in cost accounting, specifically related to the standard cost of a product. In cost accounting, if the actual price paid per unit of input (e.g., per yard of material) and the actual quantity used match the pre-determined standard cost and standard quantity, no variances are observed. A variance is essentially the difference between an actual cost and a budgeted or planned cost.
For instance, if a company anticipates that fabric should cost $6 per yard and should require 7 yards to make a garment (these are the standard costs and quantities), and these exactly match the actual costs and quantities used in production, then the company will experience no variance. Variances can be favorable or unfavorable, depending on whether the actual results are better or worse than the standard. Favorable variances occur when the cost is lower or efficiency is higher than planned, while unfavorable variances occur when costs are higher or efficiency is lower than expected.
In the examples provided, multiple price points and quantities are given for different periods or products, showing the dynamics of pricing and expenditure, which can lead to variances. However, without specifics of standard costs and quantities, we cannot calculate or assess variances for these scenarios.