Q1) TRUE OR FALSE a) The production budget is used to determine how much raw material is needed to manufacture the units that will be sold in a month. b) A labor efficiency variance is the difference between (actual labor rate multiplied by actual labor quantity) and (actual labor rate multiplied by standard labor quantity). c) The direct labor budget should include the cost of all individuals working in the production area. d) In preparing the production budget, beginning inventory units are added to, and desired ending inventory units are subtracted from, the units to be produced. e) Depreciation expense is included in the overhead budget and the pro forma income statement, but not in the cash budget. f) Both the cash collections and cash payments pattern for a company may include a percentage for amounts not paid