Answer:
the allocated direct manufacturing overhead costs of Job 56 is $25
Explanation:
Overheads in manufacturing process are allocated to jobs or products using cost drivers or surrogates.
<em><u>First Step : Determine the Pre-determined Overhead rate</u></em>
Pre-determined Overhead rate = Budgeted Overheads / Budgeted Activity
= $2,000 / 800
= $ 2.50 per labor hour
<em><u>Step 2 : Determined the Amount of Overhead allocated to Job 56 based on labor hours utilised</u></em>
Overhead for Job 56 = Pre-determined Overhead rate × Hours Used
= $ 2.50 × 10
= $25
Answer:
The correct answer is option e.
Explanation:
Suppose the US treasury is planning to issue $50 billion of new bonds. An increase in the supply of bonds will cause the supply curve to shift to the right. As a result, the price of bonds is likely to decline.
There is an inverse relationship between bond prices and interest rate. So this decline in the bond prices will cause the interest rate to increase.
Answer:
The answer is Fisher effect
Explanation:
The Fisher Effect is an economic theory depicts the relationship between inflation and interest rates. Real interest rates decreases as inflation increases
The Fisher Effect's formula is:
Real interest rate = the nominal interest rate - the expected inflation rate.
Therefore, Fisher effect occurs in countries here inflation is expected to be high, interest rates also will be high, because investors want compensation for the decline in the value of their money