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andriy [413]
3 years ago
8

Pete is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he

designs and creates an intricate maple jewelry box that takes him 20 hours to complete. By how much and in what direction does GDP change as a result of his efforts? Group of answer choices GDP rises by $1,875. GDP falls by $1,875. GDP is not affected by Pete's production of the jewelry box. GDP rises by $125.
Business
1 answer:
andreev551 [17]3 years ago
6 0

Answer:

GDP is not affected by Pete's production of the jewelry box.

Explanation:

Pete is a woodworker and works 20 hours to prepare a jewelry box to gift his wife. If Pete prepares this jewelry box to sell and earn revenue, this will be considered in GDP but in this case Pete prepares a jewelry box to give his wife as his wife's birthday gift.

All types of gifts received or given in kind are not included in Gross Domestic Production.

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Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
Misha Larkins [42]

Answer:

d. $73,500

Explanation:

The computation of the estimated total manufacturing overhead for the customizing department is shown below:

= Total fixed manufacturing overhead cost + Variable manufacturing overhead cost

where,

the variable manufacturing overhead cost = Customized Direct labor-hours × Variable manufacturing overhead per direct labor-hour

= 7,000 units × $5

= $35,000

And, the Total fixed manufacturing overhead cost is $38,500

Now put these values to the above formula

So, the answer would be equal to

= $38,500 + ($7,000 hours × $5 per hour)

= $38,500 + $35,000

= $73,500

5 0
3 years ago
How can specialization benefit an economy?
RSB [31]
The correct answer to this question is letter "b. it makes production more efficient." Specialization benefit an economy is that <span>it makes production more efficient. In this way, specialization will help the company to focus on a specific product and make the production to be efficient. </span>
7 0
3 years ago
The projected benefit obligation: Multiple Choice contains periodic service cost, accrued interest, revised estimates, plan amen
alukav5142 [94]

Answer:

is the present value of retirement benefits calculated by applying the pension formula in which the actuary includes projected salaries in the pension formula.

Explanation:

The Projected Benefit Obligation (PBO) is the present value of retirement benefits calculated by applying the pension formula in which the actuary includes projected salaries in the pension formula.

PBO is estimated by actuaries by applying the expected future increase in salaries, discount rate and a number of other factors.

To calculate projected benefit obligation, you subtract the pension plan's funded status from the fair value of the plan's assets.

4 0
3 years ago
1. A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such a
FinnZ [79.3K]

Answer:

For the students of the college, the visual appearance of the campus is non-rival and non-excludable

The benefit of the beatification initiative, as suggested by the survey, is $3,390. Because the estimated benefit is less than the cost, the college administrators should not undertake the beautification initiative.

Explanation:

non-rival and non-excludable

This means that everyone benefits from the remodel equally and people who do not pay for it will still enjoy their benefits.

$3,390

The benefit is found by multiplying the average benefit for each person surveyed by the number of people surveyed, which is $11.3 X 300 = $3,390.

The college should not complete the project because the marginal cost: $4,400 is more than the marginal benefit: $3,390.

3 0
4 years ago
Jonathan was granted enough nonqualified stock options (NQSOs) to purchase 10,000 shares of Capital, Inc. stock at $10 per share
Furkat [3]

Answer: B. III and IV

Explanation:

Based on the information given, we should note that the capital gain will be:

= $1,000,000 - $250,000

= $750,000

Also, the bargain amount will be calculated as:

= 10000 × ($25 - $10)

= 10000 × $15

= $150,000

We should also note that the statement in option 1 that "Capital gains tax is due the year the options are granted to Jonathan" is wrong. Capital gain will only arise when the shares have been sold, therefore option I is incorrect.

Based on the information above, the answer is option III and IV.

8 0
3 years ago
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