77. The direct materials budget shows: Units to be produced Total pounds needed for production Total materials required What are the direct materials A) Cannot be determined from the data provided. B) 7.0 pounds C) 0.73 pounds D) 7.3 pounds 4,700 32,900 34,310 unit? per 78. The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by A) investing activities. B) operating activities. C) financing activities. D) processing activities. 79. A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. A) True B) False 80. The standard rate of pay is $15 per direct labor hour. If the actual direct labor payroll was $88,200 for 6,000 direct labor hours worked, the direct labor price (rate) variance is A) S1,800 unfavorable. B) $1,800 favorable. C) $2,250 unfavorable. D) $2,250 favorable. 81. The acquisition of land by issuing common stock is A) a noncash transaction which is not reported in the body of a statement of cash flows. a cash transaction and would be reported in the body of a statement of cash flows. B) C) a noncash transaction and would be reported in the body of a statement of cash flows. only reported if the statement of cash flows is prepared using the direct method. D) Version 2 Page 15