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Question - Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:
Standard direct labor cost per hour: $17
Standard direct labor hours per t-shirt: .6
During the month of January, the company produced 1,250 t-shirts. Related production data for the month follows:
Actual direct labor hours: 770
Actual direct labor cost incurred: $13,000
What is the direct labor rate variance for the month?
A) $90 favorable
B) $90 unfavorable
C) $340 unfavorable
D) $340 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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