3b) State whether the following statements are true or false. If FALSE explain why. 13 marks le i) 'When doing variance analysis it is only necessary to compare the flexed and actual budgets.' Answer: Explanation: ii) 'A favourable sales price variance can only be caused by the price per unit being greater than the budgeted price per unit.' Answer: Explanation: iii) 'A favourable material usage variance can only be caused by materials being of better quality than budgeted.'- Answer: Explanation: iv) 'Only significant adverse variances should be investigated.' Answer: Explanation: 'If a total materials or labour variance equals zero, it does not need to be investigated as the budgeted figure is the same as the actual figure'.- Answer: Explanation: vi) 'An adverse fixed overhead variance can simply be explained as spending too much on overheads, it does not need to be investigated further'.- Answer: Explanation