19. Which of the following statements is true? A) When actual costs n B) An unfavorable exceed standard costs, the variance is favorable e variance results when actual costs are decreasing but standards are not changed. ariances are the differences between total actual costs and total standard costs. D) All of the above are true. 20. Which of the following is the best definition of sustainable income? A) Sustainable income is the same as net income. B) Sustai C) nable income is the most likely level of income to be obtained in the future. S ustainable income is a measure of solvency that does not include capital expenditure. D) Sustainable income is income that is unusual in nature and infrequent in occurrence 21. The direct materials and direct labor budgets provide information for preparing the A) cash budget. B) manufacturing overhead budget C) sales budget. D) production budget. 22. BVI Corporation had net income of S1,600,000 and paid dividends to common stockholders of $400,000 in 2014. The weighted average number of shares outstanding in 2014 was 500,000 shares. BVI Corporation's common stock is selling for $50 share on the NASDAQ. BVI Corporation's price-earnings ratio is A) 3.2 times. B) 15.6 times. C) 5 times. D) 10 times. 3. Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using A) full costing. B) variable costing. C) absorption costing. D) product costing