Phillip is a real estate investor. He flips homes: He buys undervalued homes and sells them at a higher price later to make a profit out of the price difference (these kind of people are called flippers). He does not do any repairs to the houses he buys. In May 2020 he bought a house built in 1997 for $1,300,000 and sold it two months later for $1,500,000. Not bad.! The real estate agent got 6% of the sale price as her commission. As a result of these transactions, the 2020 GDP increased by

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.