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Waheed Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2008: Budgeted manufacturing overhead costs $4,000,000Budgeted machine-hours 200,000Actual manufacturing overhead costs $3,860,000Actual machine-hours 195,000
a) Calculate the budgeted manufacturing overhead rate. b) Calculate the manufacturing overhead allocated during 2008. c) Calculate the amount of under- or overallocated manufacturing overhead.
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?
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