21. Net annual cash flow can be estimated by A) adding advertising expense to netic B) adding depreciation expense to ne come C) deducting credit sales from net income D) deducting credit purchases from net income 22. The capital budget for the year is approved by a company's A) officers B) board of directors C) capital budgeting committee. D) stockholders. 23. A company's planned activity level for next year is expected to be 100.000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials $120,000 Depreciation $50,000 Indirect labor 160,000 Taxes 10.000 Factory supplies 20.000 Supervision 40.000 A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of A) $300,000 B) $270,000. C) $370,000 D) $360,000. 24. The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42.400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was A) $5,600 unfavorable. B) $3,200 unfavorable. C) $2,400 favorable. D) $3,200 favorable. 25. The total direct labor hours required in preparing a direct labor budget are calculated using the A) production budget. B) direct materials budget. C) sales forecast. D) sales budget