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1. The usual starting point for a master budget is: A the production budget. B. the budgeted income statement. C. the direct materials purchase budget. D. the sales forecast or sales budget. 2. Which of the following budgets are prepared before the sales budget? A. Choice A B. Choice B C. Choice C D. Choice D 3. There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget? A. It details the required direct labor hours. B. It details the required raw materials purchases. C. It is calculated based on the sales budget and the desired ending inventory. D. It summarizes the costs of producing units for the budget period. 4. When preparing a direct materials budget, the required purchases of raw materiais in units equals: A. raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials. B. materials needed to meet the production schedule - desired ending inventory of raw materials beginning inventory of raw materials. C. raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials. D. raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials. 5. Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget? A. The Manufacturing Overhead Budget provides a schedule of all costs of production other than direct materials and labor costs. B. The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead. C. The Manufacturing Overhead Budget shows the expected cash disbursements for manufacturing overhead. D. The Manufacturing Overhead Budget is prepared after the Sales Budget