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I need help and explanation for these two scenarios - the first one deals with overhead cost and question two is on the salary of a production supervisor and what that is properly classifed as See Below
1. ABC Company applies overhead to jobs using direct labor cost as an activity. For the month of June, ABC Company estimated it would incur overhead cost of $25,000 while the actual overhead cost for June totaled $27,530. For June, ABC Company estimated it would incur direct labor cost of $40,000 while the actual direct labor cost for June totaled $38,000. For the month of June, overhead was:
underapplied by $3,780underapplied by $2,530underapplied by $33,270overapplied by $3,780overapplied by $2,530overapplied by $33,270
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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