Use this information to answer the question that follow. The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.70 per hour Variable overhead 3 hours per unit @ $1.96 per hour Actual Costs Total variable cost, $18,200 Total fixed cost, $8,100 The total factory overhead cost variance is Oa. $1,960 favorable Ob. $1,260 unfavorable Oc. $1,260 favorable Od. $560 unfavorable Which of the following conditions normally would not indicate that standard costs should be revised? Oa. Actual costs differed from standard costs for the preceding week. Ob. The average price of raw materials increased from $4.68 per pound to $4.82 per pound. Oc. The company has signed a new union contract that increases the factory wages on average by $3.50 an hour. Od. The Engineering Department has revised product specifications in responding to customer suggestions. Standards that represent levels of operation that can be attained with reasonable effort are called Oa. normal standards Ob. theoretical standards Oc. variable standards Od. ideal standards