Suppose that the fed buys $1 million of bonds from the first national bank. if the first national bank and all other banks use the resulting increase in reserves to purchase securities only and not to make loans, what will happen to checkable deposits? assume the required reserve ratio is 10 percent.

Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be: