BUS313 CH 8, 10, 11 30. A significant difference between the direct material purchases budget and the direct labor budget is that the direct material purchases budget A) considers beginning and ending inventory amounts, which are not part of the direct labor budget. B) is constructed for each quarter, while the direct labor budget is constructed for each pay period. C) is based on units sold, while the direct labor budget is based on units produced. D) is constructed from the top down, while the direct labor budget uses a bottom-up approach. 31. Mason Kitchenware requires a 30% profit margin on the selling price of its jar openers. At a price of S16 per opener, the company expects to sell 8.000 openers. Total fixed costs are expected to be $28,000. How much is the target cost per jar opener? A) $17.30 B) $7.70 C) $20.80 D) $11.20 32. Concerning relationship between beginning finished goods inventory, ending finished goods inventory. production, and sales, which of the following is true? A) Production - Beginning Inventory +Ending Inventory - Sales B) Production = Beginning Inventory-Ending Inventory + Sales C) Production - Beginning Inventory + Sales - Ending Inventory D) Production = Sales + Ending Inventory - Beginning Inventory 33. Green Company's sales are 20% cash and 80% credit. Of the credit sales, 60% are collected in the month of sale and 30% in the month following the sale. The balance is collected during the following month. Budgeted sales data is as follows: June July August September $300,000 $250,000 $280,000 $310.000 How much is total Accounts Receivable at the end of August? A) $89,600 B) $137,000 C) $224,400 D) $109,600 34. Which of the following is a characteristic of zero-based budgeting? A) It is relatively inexpensive to implement. B) It is used mostly by manufacturing companies. C) It uses the same level of activity as the prior budget period. D) It results in a fresh consideration of the validity of budget amounts