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DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow:From every bushel of corn processed, 13 pounds of starch and 3 pounds of syrup should be produced.Standard direct labor and variable overhead total $0.43 per bushel of corn processed.Standard fixed overhead (the predetermined fixed overhead application rate) is $0.35 per bushel processed.
Required: Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 14,000 bushels of corn if the average cost per bushel is $1.41.
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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