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Problem: Roberts Manufacturing had a remaining debit balance of $20,000 of in its under and over-applied factory overhead account at year-end. It also had year end balances in the following accounts:
Work in Process - $20,000
Finished Goods - 30,000
Cost of Goods Sold - 50,000
Total - $100,000
1. Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is not considered to be material.
2. Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is considered to be material.
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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