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Question: (a) Discuss the factors which should be considered when setting the standard labour cost of a product.
(b) Settah Ltd manufactures two different types of component in two production departments, a press shop and a fitting department. The budgeted production and standard labour costs for Period 5 were:
Throughout Period 5 there were 135 direct workers employed in the Press Shop and 145 in the Fitting Department. All employees in both departments attended and were paid for a 40 hour week in each of the four weeks in Period 5. However during the final week in the Fitting Department each employee was idle for 3 hours; the result of poor material scheduling.
Required: Calculate the appropriate direct wage variances for Period 5.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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