1. The _____ estimates the amount of raw materials needed to meet production goals given planned levels of raw materials inventory.

a.Direct labor budget

b.Raw materials purchases budget

c.Production budget

d.Manufacturing overhead budget

2. The difference between actual hours worked and the hours that should have been worked at the level of production, times the standard variable overhead rate.

a. Total controllable variance

b. Overhead efficiency

c. Total variable overhead variance

d. Total overhead variance

3. Whole Corporation's master budget shows straight-line depreciation machinery of P516,000 based on an annual production volume of 103,200 units of product. In July, it produced 8,170 units of product, and the accounts had the actual depreciation on machinery of P41,000. It controls manufacturing costs with a flexible budget. The flexible budget amount for depreciation on machinery for July is?

a.P38,950

b.P43,000

c.P40,850

d.P41,000