4. JCI Company produced 8,000 units of Product Y, which is 80% of capacity. Each unit required 0.50 standard machine hour for production. The standard variable factory overhead rate is $5 per machine hour. The actual variable factory overhead incurred during the period was $18,000. The variable factory overhead controllable variance is: a. $2,000 favorable $2,000 unfavorable $1,875 favorable d. $1,875 unfavorable 5. Standard costs systems enable management to determine both: a. How much a product costs in comparison to other products and how much it sells for compared to other products How much a product should cost and how much it does cost c. How much a product sells for and how much it does cost d. None of the above 6. When establishing standards, companies seek to set Normal or currently attainable standards. Which choice best defines normal standards? Theoretical standards b. Standards that can only be achieved under perfect operating conditions c. Standards that can be attained with reasonable effort d. Standards that allow for no mistakes or production difficulties Price 5. ABC company manufactures sweaters. Based on the following table, calculate the standard cost per sweater: Standard Standard Manufacturing Costs Quantity Direct materials $8.00 per sq yd. 1.25 sq yds Direct labor $10.00 per hr. 0,70 hr per sweater Factory overhead $8.00 per hr. 0.70 hr per sweater a. $12.60 b. $10.00 $22.60 d. $17.00 19 S.6