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Question - Preparing an Ending Finished Goods Inventory Budget Andrews Company manufactures a line of office chairs. Each chair takes $16 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $1.30 per direct labor hour. Andrews expects to have 620 chairs in ending inventory. There is no beginning inventory of office chairs.
Required -
1. Calculate the unit product cost. Round your answer to the nearest cent.
2. Calculate the cost of budgeted ending inventory. Round your answer to the nearest dollar.
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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