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Problem
Milton Company uses a standard cost system.
• Standards call for 2 direct labor hours per widget. The standard labor rate is $10 per hour. • Four pounds of material are needed for each widget at a standard cost of $2.25 per pound.
Milton actually produces 17,000 widgets during the year.
• Direct labor costs are $359,100 for 34,200 hours.• Milton purchased and used 70,000 pounds of materials at $2.50 per pound.
For direct labor, what is the efficiency (usage) variance? Answers are labeled as favorable (F) or unfavorable (U).
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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Create a cost-benefit analysis to evaluate the project
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