Sixty futures contracts are used to hedge an exposure to the price of silver. each futurescontract is on 5,000 ounces of silver. at the time the hedge is closed out, the basis is $0.20per ounce. what is the effect of the basis on the hedger’s financial position if (a) the traderis hedging the purchase of silver and (b) the trader is hedging the sale of silver? the excess of the spot over the futures at the time the hedge is closed out is $0.20 per ounce.

Job 456 was recently completed. the following data have been recorded on its job cost sheet: direct materials $ 2,418 direct labor-hours 74 labor-hours direct labor wage rate $ 13 per labor-hour machine-hours 137 machine-hours the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $14 per machine-hour. the total cost that would be recorded on the job cost sheet for job 456 would be: multiple choice $3,380 $5,298 $6,138 $2,622