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7. Hodge Inc. has some material that originally cost $70,000. The material has a scrap value of S60,000 as is, but if reworked at a cost of $5,000, it could be sold for $68,000. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap? A) A financial disadvantage of $7,000. B) A financial disadvantage of $2,000. C) A financial advantage of $3,000. D) A financial advantage of $8,000 Which of the following represents the normal sequence in which the budgets are prepared? 8. A) Sales Budget, Production Budget, Direct Labor Budget B) Direct Labor Budget, Sales Budget, Production Budget C) Sales Budget, Direct Labor Budget, Production Budget D) Production Budget, Sales Budget, Direct Labor Budget