The Prime Interest Rate Usually

question 97

Multiple Choice

The prime interest rate usually

• A)rises when the federal funds rate rises.
• B)rises when the discount rate falls.
• C)falls when the federal funds rate rises.
• D)falls when the Fed sells bonds in the open market.

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Definitions:

Direct Labor-hours

The amount of labor time spent by workers directly involved in the manufacturing process, restated as "The quantity of labor time directly utilized in producing goods."

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on the standard cost and the variable overhead applied to production based on actual activity levels.

Direct Labor-hours

The total hours of labor directly involved in the production of goods or services.

Variable Manufacturing Overhead

comprises manufacturing costs that vary directly with the level of production, such as materials and labor.