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Question - RL Enterprises paid direct labor employees a total of $652,000 last period. Sixty percent of this was paid to employees in the Machining Department and 40% was paid to employees in the Assembly Department. How should RL's factory labor costs be assigned to production?
a. $652,000 debit to Factory Labor
b. $391,200 debit to Work in Process-Machining and a $260,800 debit to Work in Process-Assembly
c. $391,200 credit to Work in Process-Machining and a $260,800 credit to Work in Process-Assembly
d. $652,000 credit to Work in Process
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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