Because of a recession, the inflation rate expected for the coming year is only 4%. however, the inflation rate in year 2 and thereafter is expected to be constant at some level above 4%. assume that the real risk-free rate is r* = 2% for all maturities and that there are no maturity premiums. if 3-year treasury notes yield 2 percentage points more than 1-year notes, what inflation rate is expected after year 1?

The direct labor budget of yuvwell corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st quarter 2nd quarter 3rd quarter 4th quarterbudgeted direct labor-hours 11,200 9,800 10,100 10,900the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter.required: 1. prepare the company’s manufacturing overhead budget for the upcoming fiscal year.2. compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.