7. Which of the following is a use of budgets for control? A. Plans can be made for the future. B. If conditions change between the formation of the budget and the current time, budgets can be quickly adapted. C. Budgets set a standard against which results can be compared D. Communication is improved. 8. The budget that describes how many units must be produced in order to meet sales needs and ending inventory objectives is the A. production budget. B. direct materials purchases budget. C. cash budget. D. budgeted income statement. E. none of these. 9. Looking ahead to see which actions should be taken to realize particular goals is: A. planning. B. directing. C. decision making. D. coordinating E. controlling. 10. The first step in creating the master budget is the creation of the A. production budget. B. direct labor budget. C. cash budget. D. sales budget E. budgeted income statement. Part 2 Multiple Choice-Computational (21 points -7 questions @ 3 points each) 1. Workshape Company budgeted 250,000 units of production for June, 260,000 units for July, and 320,000 units for August. Each unit requires 0.30 direct labor hours. How many direct labor hours are budgeted for August? A. 50,000 direct labor hours B. 5,000 direct labor hours C. 96,000 direct labor hours D. 52,500 direct labor hours E. 300,000 direct labor hours