Respond that the following statements are TRUE or FALSE:

1) An efficiency variance measures how well the business uses its materials or human resources.

2) A material cost variance measures the difference in quantities of actual input used and the standard quantity of input allowed for the actual number of units produced.

3) In a standard costing system, each item has a cost standard and a quantity standard.

4) Setting standard costs is a function done within a company's production department and does not require any input from other departments.

5) Standard costs are developed by the cooperative effort of procurement, production, human resources, and accounting personnel.