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Question - In producing 30,000 units of product ZZ during this period, 14,000 direct labor hours were used at a rate of $20.20 per hour. The standard labor quantity to use to produce an output unit was 0.5 hour, [with the computed total standard hours allowance [SHA] of 15,000 hours], and the standard rate to pay $20.00 per hour. Based on these data, the direct labor quantity variance was:
a. None of the listed answers is correct.
b. $2,800 favorable.
c. $2,800 unfavorable.
d. $17,200 favorable.
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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