Which of the following statements is true?

A fixed manufacturing overhead budget variance occurs as the result of a difference between the denominator level of activity $($in hours$)$ and the standard hours allowed for the actual output of the period.

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity $($in hours$),$ thersthe overhead volume variance will be favorable.

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor$-$hours. The company's choice of the denominator level of activity has no effect on the fixed portion of the predetermined overhead rate.

Multiple Choice

$$ Only statement $1$ is true.