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Question - Cabinet Makers set the following standard cost per unit for 2019. Fixed overhead (4 machine hours at $10.00) $40 Variable overhead (4 machine hours at $8) $32 The standards were sat based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. Actual fixed overhead cost $250 000 Actual variable overhead cost $165 750 Actual machine hours worked 19 800 What was Cabinet Maker's fixed overhead budget variance?
a. $5 000 unfavourable
b. $2 000 unfavourable
c. $7 000 unfavourable
d. $4 000 favourable
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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