84. Purchased land for cash. A) Financing activities section B) Investing activities section C) Operating activities section D) Does not represent a cash flow 05. The formula for determining budeeted merchandise purchases is budget A) sales + beginning inventory-desired ending inventory. B) cost of goods sold + desired ending inventory-beginning in beginning inventory. cost of goods sold + beginning inventory-desired ending invece D) production + desired ending inventory - beginning inventory 86. Cash provided by operations is generally equal to operating income. A) True B) False 87. An unfavorable materials quantity variance would occur if A) actual pounds of materials used were greater than the standard pounds allowed. B) actual pounds of materials used were less than the standard pounds allowed. C) actual labor hours used were greater than the standard labor hours allowed. D) more materials were purchased than were used. 88. Cola Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor price variance was A) S6,480 U. B) $6,480 F. C) S4,800 U. D) $1,680 U. 89. The labor quantity variance is A) (AHAR) -(AH SR). B) (AH X AR)-(SHX SR). C) (AH SR)-(SH SR). D) (AH SR) - (SH XAR)