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Question - Bowman Company has two service departments and two producing departments. The number of employees in each department is as follows:
Personnel 56
Cafeteria 87
Producing Department A 342
Producing Department B 318
Total 803
The department costs of the Personell Department are allocated on a basis of the number of employees. If these costs are budgeted at $55,421 during a given period, what would be the amount of cost allocated to Department B under the direct method?
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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