Which budget provides the specific information needed to prepare the direct labor budget? Cash budget Sales budget Production budget Operating budget A company is considering purchasing factory equipment that costs $340,000 and is estimated to have a $20,000 salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses including depreciation expense are expected to be $78,000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return (rounded) on this equipment is 3.5% 6.7% 7.1% 7.5% The following estimates relate to production of 100 units of part number 260. Item Quantity (pounds) Direct materials in finished unit 10.0 pounds Indirect materials used during production 4 pounds Spoilage during production .8 pounds Total 11.2 pounds Using ideal standards, the standard direct material quantity is .100 pounds per unit. .112 pounds per unit. Oo oo .104 pounds per unit. .108 pounds per unit