A job used 72 equipment hours at an internal allocation rate of $18 per hour. What equipment cost should be charged to the job?
Correct Answer
D) $1,296.
Equipment allocation is 72 hours x $18 per hour = $1,296.
Why This Is the Correct Answer
Equipment allocation is 72 hours x $18 per hour = $1,296.
Why the Other Options Are Wrong
Option A: $1,080.
$1,080. is below the supported result for equipment allocation; it likely skips a premium-pay or employer-cost component.
Option B: $1,188.
$1,188. is below the supported result for equipment allocation; it likely skips a premium-pay or employer-cost component.
Option C: $1,260.
$1,260. is below the supported result for equipment allocation; it likely skips a premium-pay or employer-cost component.
Memory Technique
Who controlled hours, who paid dollars, where is the Posting Usage record?
Reference Hint
Study anchor (closed-book): memorize Equipment allocation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?