Consider the Seven Statements That Follow

Consider the seven statements that follow. 1.An analysis of fixed overhead will typically result in the computation of the fixed-overhead spending variance and the fixed-overhead volume variance. 2.The standard rate for fixed overhead is computed by dividing a company's budgeted fixed overhead for the period by the planned manufacturing activity. 3.A company uses direct labor hours to apply manufacturing overhead to units of production.If the company reports an unfavorable labor efficiency variance, that same firm might report a favorable variable-overhead efficiency variance in the same accounting period. 4.The amount of actual fixed overhead for an accounting period is used to compute the fixed-overhead volume variance. 5.If a company's standard hours allowed for the manufacturing activity attained exceeds the planned manufacturing activity, the firm will report a favorable fixed-overhead volume variance. 6.The amount of fixed overhead that a company has budgeted for an accounting period will increase or decrease with the actual number of units produced. 7.The fixed-overhead volume variance indicates whether the level of production activity attained is higher or lower than the level originally anticipated. Required: Determine whether the preceding statements are true or false.If a statement is false, briefly explain why it is false.