The washington post article the downsides of cheap corn reports that "u. s. farmer profits are expected to plummet by nearly 27 percent in 2014" according to usda estimates. for corn farmers, however, the problem is not because they are having trouble growing enough crops. on the contrary, "[h]ealthy american harvests are driving prices down significantly." corn prices fell from $6.9/bushel in 2013 to $4.5/bushel in 2014. according to the usda, corn production grew from 10.8 billion bushels in 2012 (a drought year) to 13.93 billion bushels in 2013. for the sake of simplicity, assume that there is a one-year lag before corn harvests reach the market (i. e., the production numbers for 2012 are reflected in the prices for 2013) and that the production numbers indicate equilibrium quantities. illustrate the price change of corn from 2013 to 2014 based on the information presented, and click on point c and move it to the new equilibrium for 2014.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6