5. Which of the following statements regarding variable overhead variances is correct? a. The variable overhead price variance could have occurred because actual costs are different from those expected. b. The relationship between variable production overhead costs and the basis chosen is perfect c. The variable overhead price variance usually contains only the efficiency items. d. The variable overhead efficiency variance is related to the use of variable costs. e. None of the above 6. Which of the following statements regarding fixed overhead is correct? a. Production volume variance is the difference between the actual and applied fixed overhead. b. When the income statement is prepared using variable costing, there is no absorption of the fixed costs by units of production. c. Production volume variance applies only to fixed costs. d. Both b and c are correct. e. None of the above 7. A company purchased and used 10,000 pounds of materials while incurring $2,000 unfavorable price variance. The standard cost for materials is $4.80 per pound. What was the actual price of materials per pound? a. $5.00. b. $4.90. c. $5.10. d. $5.20. e. None of the above 8. Which of the following statements regarding standard costing system is incorrect? a. The difference between actual costs assigned and the standard costs of the work done determines the variance. b. Favorable variances should be credited. c. The use of standard costs contributes to management control. d. Standard costing system complicates the costing of inventories. e. All are correct