Peg's Manicure Manor Did 4,000 Sets of Nails in 2010

question 67

Multiple Choice

Peg's Manicure Manor did 4,000 sets of nails in 2010 and 4,500 sets of nails in 2011.The price of a set of nails was $20 in 2010 and $22 in 2011.If 2010 is the base year, Peg's contribution to real GDP in 2011 was ______ and to nominal GDP in 2011 was _____.

• A)$80,000; $88,000
• B)$80,000; $90,000
• C)$80,000; $99,000
• D)$90,000; $99,000

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Definitions:

Raw Materials

The fundamental elements and parts employed during manufacturing to create final products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as rent, utilities, and maintenance.

Underapplied Overhead

This occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, indicating that the overhead was not fully assigned to products or jobs.

Adjusted Cost of Goods Sold

The cost of goods sold figure after adjustments for factors like overhead, discounts, returns, and allowances have been taken into account.