True/False

____ 1. The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

____ 2. Factory overhead uses different variances than direct materials and direct labor because factory overhead has fixed and variable cost elements. Direct materials and direct labor are variable costs.

____ 3. Standard costs may be incorporated into the accounts in the general ledger.

____ 4. Standards should be revised when prices, product designs, labor rates, or manufacturing methods change.

____ 5. An example of a criticism of standard costs is that standards may limit operating improvements by discouraging improvement beyond the standard.